One of the consequences of the continuous rise in interest rates has been an increase in financial vulnerability among corporations.
“In 2019-2020, companies could obtain loans in the eurozone at rates of 1.5–2%, and in the U.S. at 2–3% per annum, however, in 2024, refinancing has only become possible at rates of 5–6% in both economies,” analysts report.
The number of "zombie companies," which continue to operate but are unable to service their debt without external infusions, has significantly increased,” they add.
The long-term period of high rates, according to experts, increases the risks of financial instability. In this regard, a broad process of debt restructuring becomes inevitable: peaks in refinancing corporate obligations are expected in 2027-2028, coinciding with sovereign peaks in 2025-2026.
“The increase in the number of 'zombie companies' and the need for budget consolidation in most countries limit investment opportunities and increase the risk of slowing global economic growth,” the authors of the study conclude.
