Inflation struck European firms seek most emergency funds since pandemic

Firms grappling with high inflation and soaring operating costs are seeking fresh short-term liquidity lines in an echo of the worst days of the 2020 coronavirus pandemic.

European high-grade companies are taking out facilities maturing in two years or less, significantly shorter than the average five-year term of conventional loans. They’ve sealed €76 billion ($75 billion) of short-term financing this year -- the second-highest on record after the €153 billion extended in 2020, according Bloomberg-compiled data.

The increase in emergency funding is a worrying sign as central banks fight to tame surging inflation. The European Central Bank last week