Slightly improved borrowing climate

In June and August of 2003 the Ifo Institute queried the participants of Ifo Business Survey on the willingness of banks to grant loans; this question was repeated in March. The latest survey results show that banks are somewhat less restrictive in granting loans than in summer 2003. The borrowing climate improved slightly in March 2004 over August 2003 at a very low level, with a stronger improvement in western than in eastern Germany. A reason for the slight improvement is the beginning economic recovery, but independent of the recovery and the size of the customer, the banks seem to have increased their willingness to grant loans.