2010.08.2706:17:00UTC+00German Business Credit Constraints Ease Further

The credit hurdle for German businesses reduced for the eighth successive month in August, figures showed on Friday.

The Ifo Institute said 29.5% of the surveyed firms assessed bank lending policies as restrictive in August, down from 31.6% in July. "The credit awarding practices of the banks as a risk factor to the economic recovery in Germany is increasingly fading into the background," said Hans-Werner Sinn, Ifo President.

Credit constraints among large manufacturing firms fell to 32.0 from 36.7 in July, while it rose slightly in construction. The trade sector also reported easing credit constraints.

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