Red Flag Report News Today : Breaking News, Live Updates & Top Stories | Vimarsana

A crunch is looming, finance industry experts said, with smaller businesses at most risk.

Debt-laden companies across Europe, Middle East and Africa face a $500 billion refinancing scramble in the first half of 2024, a challenge that could kill off many "zombie" businesses even though an expected peak in rates could bring some relief. Businesses facing rising debt costs after years of low rates will have to compete to secure enough cash in the biggest corporate refinancing rush seen for years, just as banks rein in risk ahead of stricter capital rules. A crunch is looming, finance industry experts said, with many weaker, smaller businesses seeking new private loans and ...

LONDON : Debt-laden companies across Europe, Middle East and Africa face a $500 billion refinancing scramble in the first half of 2024, a challenge that could kill off many "zombie" businesses even though an expected peak in rates could bring some relief.Businesses facing rising debt costs after years of

Debt-laden companies in Europe, the Middle East, and Africa are facing a $500 billion refinancing challenge in the first half of 2024. This could lead to the demise of many "zombie" businesses, despite an expected peak in interest rates offering some relief. The rush to secure cash comes as banks reduce risk ahead of stricter capital rules. Weaker businesses are seeking new loans and debt deals just as government borrowing costs increase globally. Failure to secure affordable funding could result in insolvencies and job losses.

The number of firms in financial distress fell in the second quarter of this year compared to the first, according to insolvency specialist Begbies Traynor. The 85,000 construction in financial trouble in the second quarter of this year was down on the near 96,000 facing problems in the first first three months of the year. However, it was still significantly higher than the 67,000 in financial distress at the same time last year. The data has come from the firm’s Red Flag Report, which examines CCJs and company accounts to calculate the number of businesses in trouble. Last year saw a stea...