Bank credit to the domestic private sector : July 2010
31/08/2010 - Press Releases
The annual growth rate of total credit granted to the domestic private sector decreased further to 2.0% in July 2010, from 2.4% in June 2010 and 4.2% in December 2009. Compared with June 2010, there was a slowdown of credit expansion to both enterprises and individuals, while credit expansion to sole proprietors remained almost unchanged at its level of the previous month.
It should be noted that as of June 2010 sole proprietors, in accordance with the European System of Accounts (ESA95), are not included in enterprises but are recorded as a separate sub-sector. This change, which is of a purely statistical nature, has no effect on the growth rates of credit aggregates.
Credit to domestic enterprises
The net flow of credit to domestic enterprises in July 2010 amounted to €161 million (July 2009: €464 million) and the annual rate of credit expansion slowed down to 2.8% compared to 3.1% in June 2010 (December 2009: 5.1%).The analysis of credit to enterprises by branch of economic activity shows that, in July 2010, credit expansion to ‘other financial institutions’ accelerated (July 2010: 8.7%, June 2010: -3.6%, December 2009: 5.8%), while it remained unchanged in the case of ‘trade’ (July 2010: -1.8%, June 2010: -1.7%, December 2009: 4.2%), and ‘remaining branches' (July 2010: 5.0%, June 2010: 5.0%, December 2009: 10.4%). On the contrary, deceleration was recorded in the annual growth rate of credit to ‘agriculture’ (July 2010: 0.2%, June 2010: 1.0%, December 2009: 3.7%), to ‘industry’ (July 2010: -2.2%, June 2010: -0.6%, December 2009: -3.5%), to ‘shipping’ (July 2010: 6.1%, June 2010: 6.8%, December 2009: 4.0%), to construction (July 2010: 1.0%, June 2010: 2.0%, December 2009: 2.7%), to ‘tourism’ (July 2010: 4.0%, June 2010: 4.2%, December 2009: 7.8%), to ‘electricity-gas-water’ (July 2010: 33.5%, June 2010: 36.4%, December 2009: 14.7%) and to ‘communication and transport services excluding shipping’ (July 2010: 16.5%, June 2010: 23.6%, December 2009: 25.5%).
Credit to domestic sole proprietors
The net flow of loans to sole proprietors (professionals, farmers and unincorporated businesses) was positive €55 million in July 2010, and its annual rate of change remained almost unchanged (July 2010: 2.7%, June 2010:2.6%).
Credit to domestic individuals & private non-profit institutions
The net flow of credit to domestic individuals & private non-profit institutions in July 2010 was negative, amounting to minus €258 million (July 2009: plus €383 million) and the annual rate of credit expansion decelerated further (July 2010: 1.1%, June 2010: 1.6%, December 2009: 3.1%).
More specifically, the net flow of housing loans was positive €21 million in July 2010 (July 2009: positive €329 million) while its annual growth rate decelerated (July 2010: 1.9%, June 2010: 2.3%, December 2009: 3.7%).
Consumer credit depicted a negative net flow of €279 million (July 2009: positive flow of €116 million) while its annual growth rate decreased compared to June (July 2010: -0.7%, June 2010: 0.4%, December 2009: 2.0%).
The net flow of “other loans” to individuals and private non-profit institutions was zero in July 2010 (July 2009: minus €63 million), and its annual rate of change increased to 2.2% from 0.1% in June 2010 (December 2009: -1.1%).
CREDIT TO DOMESTIC PRIVATE SECTOR
Note: The statistics on credit expansion to the private sector for the reference month of August 2010 will be published on 27 September 2010.