SMEs debt financing in the EU: on the eve of the coronacrisis

Banks and Bank Systems

Yevheniia Polishchuk¹  Alina Pinchuk²  Inna Lopashchuk³  Anna Kornyliuk⁴ 

[1] Doctor of Economics, Faculty of Finance, Сorporative Finance and Controlling Department, Kyiv National Economic University named after Vadym Getman;Ph.D. in Economics, Associate Professor, Acting Director of the Educational-Scientific Institute of Economics, Chernihiv National University of Technology;Ph.D. in Economics, Associate Professor, Faculty of Finance, Business and Accounting, Department of Business, Trade and Stock Exchange Operations, Yuriy Fedkovych Chernivtsi National University;Ph.D. in Economics, Associate Professor, Faculty of Finance, Corporative Finance and Controlling Department, Kyiv National Economic University named after Vadym Getman;

关键词: bank loans;    COVID-19;    credit lines;    debt crisis;    financial indicators;    SMEs;   

DOI  :  10.21511/bbs.15(3).2020.08

来源: DOAJ

【 摘 要 】

SMEs are the main drivers of economic development. As the debt crisis and coronavirus crisis show, despite their importance, they are extremely sensitive to economic downturns. Therefore, SMEs need to be supported through various tools. The paper is aimed at evaluating the SMEs’ bank and governmental support in the northern and southern EU countries in two crisis periods and assessing the financial state of SMEs on the eve of coronacrisis using micro-level data. It was proved that bank loans and credit lines remain the main sources of SMEs’ financing. After the debt crisis, banks are becoming more loyal to SMEs.It was proved that SMEs from the northern EU countries suffered less from the previous crisis and therefore started their recovery earlier than the southern ones in terms of profitability, liquidity and debt burden. In addition, it was shown that both groups on the eve of the new turbulence period were in better financial state compared to the previous debt crisis. The southern EU countries suffered more from both crises. At the same time, due to effective governmental support and bank loyalty, their SMEs entered the coronacrisis at the same level of financial stability as the northern ones. Since the new support measures are concentrated primarily in the banking sector through loan guarantee schemes and reduced interest rates, it is essential to provide debt financing to high-quality borrowers and avoid the debt crisis in southern counties.

【 授权许可】

Unknown