Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154253
Authors: 
Ferrando, Annalisa
Popov, Alexander
Udell, Gregory F.
Year of Publication: 
2015
Series/Report no.: 
ECB Working Paper 1820
Abstract: 
We investigate the effect of sovereign stress and of unconventional monetary policy on small firms’ financing patterns during the euro area debt crisis. We find that after the crisis started, firms in stressed countries were more likely to be credit rationed, both in the quantity and in the price dimension, and to increase their use of debt securities. We also find evidence that the announcement of the ECB’s Outright Monetary Transactions Program was followed by an immediate decline in the share of credit rationed firms and of firms discouraged from applying. In addition, firms reduced their use of debt securities, trade credit, and government-subsidized loans. Firms with improved outlook and credit history were particularly likely to benefit from easier credit access.
Subjects: 
Credit Access
SMEs
sovereign debt
unconventional monetary policy
JEL: 
D22
E58
G21
H63
ISBN: 
978-92-899-1633-2
Document Type: 
Working Paper

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