KfW unveils KfW-ifo Credit Constraint Indicator

Germany's KfW has released the first edition of its KfW-ifo Credit Constraint Indicator to monitor and assess the supply of credit to SMEs and large-scale enterprises during the coronavirus crisis.

Like the KfW-ifo SME Barometer, the new quarterly indicator is based on data from the ifo economic surveys.

The evaluation of the first quarter of 2020 shows a good starting position, with credit constraint low across both size classes. Only 17.2% of SMEs reported difficulties in loan negotiations. That means the impact of the coronavirus on the credit market is yet to be seen.