The European Central Bank (ECB) announced today that companies in the eurozone have reported a slight net increase in bank loan interest rates, with a net rise of 2% compared to -14% in the previous quarter.
This increase was mainly reported by small and medium-sized enterprises, while a net balance of 3% of large companies reported a drop in interest rates.
At the same time, a net percentage of 23% of companies (up from 16% in the previous quarter) noted increases in other financing costs, including fees, expenses, and commissions, as well as in collateral requirements, which saw a net percentage increase to 16% from 11% in the second quarter of 2025.
The borrowing needs of eurozone companies remained steady, but the availability of these bank loans has decreased, creating a gap in bank loan financing.
Companies expect the availability of external financing to remain steady over the next three months, indicating less optimistic prospects compared to the second-quarter survey.
Eurozone companies anticipate one-year inflation at 2.5%, consistent with the previous survey.
Inflation expectations for companies at three and five years remain at 3%.
The ECB conducted interviews with 10,225 eurozone companies from August 27 to October 3, 2025, of which 93% had fewer than 250 employees.
