Published
05/11/2026, 15:45High interest rates and expensive loans have intensified pressure on businesses worldwide. According to the Eurasian Development Bank (EDB), in 2024 the share of so-called “zombie companies” reached 7–8% of the total number of enterprises. The problem is particularly acute in developed economies.
These are large, mature companies that for several years have been unable to generate enough profit even to service interest on their debts and continue to exist mainly through constant loan refinancing.
“During the period of cheap money, companies actively increased their debt burden; however, after interest rates rose, refinancing became significantly more expensive. “Whereas businesses used to be able to borrow at 2–3% per annum, the cost of new loans now reaches 5–6%,” the EDB notes.
The problem is exacerbated by the so-called “repayment wall.” Companies are forced to postpone payments to later dates, but at higher interest rates. As a result, the peak of corporate repayments is now expected in 2028, with the volume having nearly doubled.
EDB analysts warn that the growing number of “zombie companies” reduces economic productivity, as resources remain tied up in inefficient businesses instead of flowing into more productive sectors.
