Survey of 320 companies - more credit facilities needed

Over two-thirds of businesses are finding it extremely difficult to keep within their bank credit limits, and 70% are having a hard time getting new credit facilities
 
A survey of 320 companies conducted by the Federation of Israeli Economic Organizations shows that over two-thirds of businesses are finding it extremely difficult to keep within their bank credit limits, and 70% are having a hard time getting new credit facilities.
 
The survey which was conducted during December 2008 and early January 2009, among 320 companies in several leading sectors; hotels, construction, diamonds, trade and services and manufacturing shows that most of the companies said they were in urgent need of more credit facilities in order to continue operating.
 
The majority of the companies (70%) reported difficulties in getting new or additional credit, 34% needing a month's worth of operating capital, 24% saying they needed two months and 15% wanting even more.
 
The survey also shows that firms are of the opinion the most important support the government can provide is state guarantees for credit, this can be achieved by setting up a government fund providing full guarantee to banks as well as other financial institutions. The companies also said that they were in need of employment grants to prevent layoffs.