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Bank credit to the domestic private sector: August 2010

27/09/2010 - Press Releases

The annual growth rate of total credit granted to the domestic private sector decreased further to 1.5% in August 2010, from 2.3% in July 2010 and 4.1% in December 2009. Compared to July 2010, there was a slowdown of credit expansion to all the sub-sectors, enterprises, sole proprietors, individuals and private non-profit institutions.

Credit to enterprises

The net flow of credit to enterprises (1) in August 2010 was negative, minus €695 million and the annual rate of credit expansion slowed down to 2.3%, from 3.4% in July 2010 (December 2009: 5.0%).

The analysis of credit to enterprises by branch of economic activity shows that, in August 2010, there was an acceleration of credit expansion to agriculture (August 2010: 2.3%, July 2010: 0.1%, December 2009: 3.7%), to tourism (August 2010: 4.6%, July 2010: 3.9%, December 2009: 7.8%) and to construction (August 2010: 1.8%, July 2010: 1.2%, December 2009: 2.7%). The annual growth rate of credit to trade increased in comparison to the previous month, remaining however at negative level (August 2010: -0.7%, July 2010: -1.3%, December 2009: 4.2%).

On the contrary, deceleration was recorded in the annual growth rate of credit to industry (August 2010: -2.9%, July 2010: -1.3%, December 2009: -3.5%), to shipping (August 2010: 4.5%, July 2010: 6.9%, December 2009: 4.0%), to other financial institutions (August 2010: 2.9%, July 2010: 8.5%, December 2009: 5.8%), to electricity-gas-water (August 2010: 24.0%, July 2010: 27.8%, December 2009: 14.7%), to communication and transport services excluding shipping (August 2010: 0.2%, July 2010: 14.7%, December 2009: 25.5%) and to the “remaining branches” (August 2010: 6.8%, July 2010: 7.4%, December 2009: 9.7%).

Credit to sole proprietors

The net flow of loans to sole proprietors (professionals, farmers and unincorporated businesses) was negative, minus €169 million in August 2010, and its annual rate of change decelerated (August 2010: 0.6%, July 2010: 2.8%).

Credit to individuals & private non-profit institutions

The net flow of credit to individuals & private non-profit institutions in August 2010 was negative, amounting to minus €258 million and the annual rate of credit expansion decelerated further (August 2010: 0.6%, July 2010: 1.0%, December 2009: 3.1%).

More specifically, the net flow of housing loans was negative minus €192 million in August 2010 (August 2009: positive €42 million) and its annual growth rate decelerated (August 2010: 1.6%, July 2010: 1.9%, December 2009: 3.7%).

Consumer credit depicted a negative net flow of €26 million (August 2009: positive flow of €91 million) while its annual growth rate decreased compared to July (August 2010: -1.5%, May 2010: -1.1%, December 2009: 2.0%).

Finally, the net flow of “other loans” to individuals and private non-profit institutions was negative minus €40 million in August 2010 (August 2009: minus €25 million), and its annual rate of change decreased to 1.7% from 2.2% in July 2010 (December 2009: -1.1%).

Bank credit to the domestic private sector - August 2010 - Table

Note: The statistics on credit expansion to the domestic private sector for the reference month of September 2010 will be published on 27 October 2010.

 

(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.

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