Bank credit to the domestic private sector: September 2010
02/11/2010 - Press Releases
The annual growth rate of total credit granted to the domestic private sector decreased further to 1.2% in September 2010, from 1.4% in August 2010 and 4.1% in December 2009. This development reflects exclusively the deceleration of the annual growth rate of credit to individuals and private non-profit institutions, whereas the annual growth rate of credit to enterprises remained unchanged, and credit expansion to sole proprietors accelerated.
Credit to enterprises
The net flow of credit to enterprises (1) in September 2010 was positive, €1.118 million (September 2009: positive net flow €1.070 million), and the annual growth rate of credit remained unchanged at the level of the previous month (September 2010: 2.2%, August 2010: 2.2%, December 2009: 5.0%).
The analysis of credit to enterprises by branch of economic activity shows that, in September 2010, there was an acceleration of credit expansion to shipping (September 2010: 8.6%, August 2010: 4.5%, December 2009: 4.0%), to construction (September 2010: 3.3%, August 2010: 1.8%, December 2009: 2.7%) and to electricity-gas-water (September 2010: 26.1%, August 2010: 24.0%, December 2009: 14.7%). The annual growth rate of credit to industry increased in comparison to the previous month, remaining however at negative level (September 2010: -1.9%, August 2010: -2.8%, December 2009: -3.5%).
On the contrary, deceleration was recorded in the annual growth rate of credit to agriculture (September 2010: 1.2%, August 2010: 2.3%, December 2009: 3.7%), to trade (September 2010: -2.3%, August 2010: -0.6%, December 2009: 4.2%), to tourism (September 2010: 4.4%, August 2010: 4.7%, December 2009: 7.8%), to other financial institutions (September 2010: 2.3%, August 2010: 3.0%, December 2009: 5.8%), to communication and transport services excluding shipping (September 2010: -0.6%, August 2010: 0.2%, December 2009: 25.5%) and to the “remaining branches” (September 2010: 5.5%, August 2010: 6.1%, December 2009: 9.7%).
Credit to sole proprietors
The net flow of loans to sole proprietors (professionals, farmers and unincorporated businesses) was positive in September 2010, amounting to €65 million, and its annual rate of change accelerated (September 2010: 1.3%, August 2010: 0.8%).
Credit to individuals & private non-profit institutions
The net flow of credit to individuals & private non-profit institutions in September 2010 was negative, amounting to minus €175 million (September 2009: plus €505 million), and the annual rate of credit expansion decelerated further (September 2010: 0.1%, August 2010: 0.6%, December 2009: 3.1%).
More specifically, the net flow of housing loans was negative and amounted to minus €66 million in September 2010 (September 2009: plus €379 million) and its annual growth rate decelerated (September 2010: 1.0%, August 2010: 1.6%, December 2009: 3.7%).
Consumer credit depicted a negative net flow of €167 million (September 2009: positive net flow of €64 million) and its annual growth rate decreased compared to August (September 2010: -2.1%, August 2010: -1.5%, December 2009: 2.0%).
Finally, the net flow of “other loans” to individuals and private non-profit institutions was positive, amounting to €59 million in September 2010 (September 2009: €61 million), and its annual rate of change stood at 1.6% compared with 1.7% in August 2010 (December 2009: -1.1%).
Bank credit to the domestic private sector: September 2010 - Table
(1) 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 and the net flows of credit aggregates.