🔎 We see 2 trends in Eurozone that will probably affect companies in search of financing this year:

📍 Lending conditions will tighten further in the Eurozone, meaning that 𝗯𝗮𝗻𝗸𝘀 𝘄𝗶𝗹𝗹 𝘁𝗲𝗻𝗱 𝘁𝗼 𝗯𝗲 𝗺𝗼𝗿𝗲 𝘀𝗲𝗹𝗲𝗰𝘁𝗶𝘃𝗲 𝗼𝗻 𝘁𝗵𝗲 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 𝗼𝗳 𝘁𝗵𝗲 𝗯𝗼𝗿𝗿𝗼𝘄𝗲𝗿𝘀 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀. Lending conditions will tend to be more expensive. Obviously this will vary from sector to sector

📍It seems the ECB will keep 𝗿𝗮𝗶𝘀𝗶𝗻𝗴 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲𝘀 𝗮𝗻𝗱 𝘁𝗶𝗴𝗵𝘁𝗲𝗻𝗶𝗻𝗴 to fight inflation, which, next to a credit slump, may well induce an 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝘀𝗹𝗼𝘄𝗱𝗼𝘄𝗻 𝗶𝗻 𝗘𝘂𝗿𝗼𝘇𝗼𝗻𝗲 𝗯𝘆 𝘁𝗵𝗲 𝘀𝘂𝗺𝗺𝗲𝗿.

Sources: https://think.ing.com/snaps/eurozone-bank-lending-dampened-by-ecb-monetary-tightening