The international business newspaper Financial Times reports that the borrowing provided by the European companies for the bond issues and as credits may exceed the debt record fixed in early times of the financial crisis. Such a conclusion was based on the Fitch forecast.
Lower interest rates and longer terms for the repayment of money support the refinancing growth in the eurozone. Moreover, merger and acquisition deals serve as catalysts on the credit market. In the period January – September 2014, the number of the M&A deals increased by 25% against the last year figure.
The funds attracted by the companies for fulfilling these deals amount to €1.04 trillion. During the January-September period, the new debt of the European region's companies is up 10% to €881 billion. It is expected that the debt issues will be €1.5 trillion by the year end and will exceed the 5-year average debt (€1 trillion).
