Low prevalence of zombie firms in Denmark

Analysis - December 2019 - No. 29

Authors Andersen, Svend Greniman; Kramp, Paul Lassenius; Kuchler, Andreas
Subject Financial markets and financial stability; Business enterprises and households
Type Analysis
Year 2019
Published 18 December 2019
Weak firms, "zombies", account for less than 1.5 per cent of Danish firms, which is low compared with other countries. Interest rates have been falling for several years, but the risk of remaining a zombie has not increased. This indicates that lower interest rates have not resulted in a higher prevalence of zombies. Moreover, there are no indications that banks have eased conditions more for zombies than for other firms.