Rising Cost Of Debt Could Cost UK Plc £25bn In Refinancing
9th February 2024
The climbing cost of borrowing could result in a £25bn refinancing burden for UK Plc in the next three years, according to the latest report from EY-Parthenon.
► Though the outlook is brightening, businesses shouldn't over-rely on interest rates coming down quickly.
► Even with lower rates, the cost of debt for UK firms has increased on average by 3%-6% since January 2022.
► Some £500bn of corporate debt will need to be refinanced in the UK between 2024 and 2027.
► Pressure is being put on valuations due to softening demand in some sectors.
To avoid losing value, businesses should take a series of actions, including looking to deleverage, reviewing cash intensive activities, improve working capital and continue to plan for different economic scenarios.
For more details read the full report HERE
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