December 18, 2017 / 11:20 AM / a year ago

No rise of 'zombie firms' in Germany despite low rates: BuBa

FRANKFURT, Dec 18 (Reuters) - There is no sign of a rise in the proportion of “zombie firms” in Germany despite low borrowing costs that reduce the incentives for banks to pull the plug on clients in arrears, the Bundesbank said on Monday.

“The proportion of zombie firms out of all companies in Germany is small and has not increased during the period of low interest rates,” the Bundesbank said in its monthly report. (Reporting By Francesco Canepa; Editing by Toby Chopra)

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