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CORPORATE REFINANCINGS TO BOOM IN '94 SAYS COMMERCIAL FINANCE EXEC

 WINDSOR, Conn., Jan. 13 /PRNewswire/ -- Spurred on by the same low interest rates that are driving homeowners and other consumers to refinance their loans, U.S. companies have been refinancing debt at a record pace says the head of a leading commercial finance company. According to Peter G. Bland, president and CEO of Barclays Business Credit, the trend will continue in 1994 and is good news for the economy. Barclays Business Credit, a U.S.-based subsidiary of London's Barclays Bank (NYSE: BCS), provides asset-based financing -- primarily to medium-sized companies -- through offices around the country.
 By refinancing debt at lower rates, Bland says companies are significantly reducing borrowing costs, allowing them to expand their businesses. This has a positive and supporting effect on the economy. "With fewer dollars committed to servicing debt, companies can purchase new equipment, open new plants, invest in research, develop new products and use their cash flow in productive ways," he says.
 Supporting Bland's observation is a recent report by the U.S. Commerce Department, which found that companies expect to increase capital spending nearly 5.5% in 1994 after a 7% rise in 1993. When adjusted for anticipated lower prices on such items as computers, spending is expected to rise 7% in 1994 vs. 8.5% in 1993.
 "We saw a 30 percent increase in the volume of debt refinancings in 1993, and we expect the pace to continue in 1994," states Bland. His company lends to manufacturers, wholesalers, distributors, and retailers to assist in refinancing debt, corporate restructuring, acquisitions and other business expansion activities. As a result, Bland says they have a good feel for the direction of this trend.
 "Many of our customers increased their debt and became highly leveraged during the 1980s," Bland says. "Now, with interest rates at more comfortable levels, and no shortage of credit for sound proposals, companies are reversing the trend by paying off high-interest loans, consolidating their borrowings, and using the additional cash flow to grow their businesses. This expansion will help stimulate the economy in 1994," Bland says.
 -0- 1/13/94
 /CONTACT: Judy Hart, Barclays Business Credit, 203-657-7614/
 (BCS)


CO: Barclays Business Credit; Barclays Bank ST: Connecticut IN: FIN SU:

LV -- NYYFNS1 -- 1630 01/13/94 06:50 EST
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Publication:PR Newswire
Date:Jan 13, 1994
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