European debt crisis caused a dramatic shortage of solar energy business loans
According to market liquidity point of view, through a series of U.S. solar energy company declared bankruptcy, many European solar companies have felt the pressure of the debt crisis. In Europe, the debt crisis, banks are reluctant to provide loan services, therefore, Europe s solar energy business may face short-term liquidity problems. The third quarter of 2011 has been
And that of the U.S. solar companies declared bankruptcy. The company said the bankruptcy because of the lack of cheap Chinese products, the competitiveness of solar energy, thus again resulting in fair trade within Europe and the United States the problem. Industry sources, most European companies are burdened with high debt ratio, this will help the enterprises in the rapidly expanding industrial boom, however, because of market demand is low, these companies are very vulnerable to lack of funds or cash shortage problems. Cause banks are reluctant to provide loans not only because of the debt crisis in Europe, demand for solar energy market also contributed to the low financial institutions think twice before lending to another reason. Bears a heavy debt burden of European companies must not only bear the problem of inadequate funding, but also for the payment of monthly interest on existing debt. The industry added low-cost solar products and a backlog of inventory that have made these companies bear a heavier financial burden. Renewable resources such as Norway and Germany s solar companies have cut production in recent months, said the plan.