Deloitte CFO survey: worst of credit crunch still to come

by Editor 7/17/2008 4:03:00 PM
Chief financial officers from the top 350 companies in the UK suggest that the worst of the credit crunch has yet to come.

Deloitte recently polled 83 CFOs from these companies only to find that 66 percent of them disagree with US treasury secretary Henry Paulson, who recently said that the most pronounced effects of the crisis had already passed.

Nine out of ten UK CFOs said that taking out a loan was still “costly” for their company, while 77 percent said that credit was “hard to obtain” in the current economic climate.

Margaret Ewing, partner and vice-chairman at Deloitte, said: “The squeeze on liquidity is increasingly transmitting itself to the corporate sector through a reduced supply and rising cost of credit. Tighter credit conditions have triggered a major change in corporates’ attitude to debt. Enthusiasm for raising, borrowing – or gearing – has fallen sharply.”

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