UMCs have to meet stricter requirements for credit loan

Financial directors of the university medical centres realize that banks have tightened their requirements for credit loan. Under the authority of the Dutch Federation of University Medical Centres (NFU), researchers Van Helden, Feenstra and Noordzij from the Faculty of Economics and Business, University of Groningen, investigated the contents of the stricter conditions.

The eight university medical centres (UMCs) are regularly in need of funding for construction activities, varying from large-scale new buildings to extensive renovations. This requires large amounts of money, from a few tens to a few hundreds of millions of euros.

UMCs are no longer considered to be ‘risk-free’ institutions. Since the credit crisis, banks have less liquid capital to lend and the higher risk profile of UMCs is reflected in the interest rates. Tightened regulations will expectedly cause banks to further intensify their conditions for credit loan in the future. Researchers have investigated these conditions.

The research was published in www.Zorgvisie.nl. The complete research report can be downloaded from the website.
Read more (in Dutch): Banken stellen hardere eisen aan umc's