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Bank credit to domestic enterprises and households: April 2010

31/05/2010 - Press Releases

The annual growth rate of total credit expansion to domestic enterprises and households decreased further to 3.2% in April 2010, from 3.5% in March 2010 and 4.2% in December 2009. Compared with March 2010, credit expansion to both enterprises and households showed a deceleration.

Credit to domestic enterprises

More specifically, the net flow of credit to domestic enterprises in April 2010 amounted to €15 million (April 2009: €446 million) and the annual rate of credit expansion declined to 3.9%, from 4.3% in the previous month (December 2009: 5.1%).

The analysis of credit to enterprises by branch of economic activity shows that in April 2010 there was a deceleration in the annual growth rate of credit extended to all sectors, with the exception of credit to “Other Financial Institutions” where the annual growth rate accelerated due to intra-group transactions.

More specifically, credit expansion to “Industry” continued to depict a negative annual growth rate (April 2010:-1.7%, March 2010:-1.3%, December 2009:-3.5%) and credit expansion to “Trade” also recorded negative annual growth rate (April 2010: -0.8%, March 2010: 0.5%, December 2008: 4.2%).

The annual growth rate of credit extended to “Construction” remained basically unchanged at the level of the previous month (April 2010: 3.3%, March 2010: 3.4%, December 2009: 2.7%), while the annual growth rate of credit to “Shipping” recorded a significant deceleration (April 2010: 0.7%, March 2010: 2.3%, December 2009: 4.0%).

On the contrary, credit expansion was relatively high in the case of “Other Financial Institutions” (16.5%), “Tourism” (7.9%), “Electricity-Gas-Water supply” (20.5%), “Communication and Transport Services excluding Shipping” (27.9%) and “Remaining branches” (6.3%).

Credit to domestic households

The net flow of credit to households in April 2010 was negative, amounting to minus €174 million (April 2009: plus €115 million) and the annual rate of credit expansion decelerated to 2.5% (March 2010: 2.7%, December 2009: 3.1%).

More specifically, the net flow of housing loans was minus €18 million in April 2010 (April 2009: plus €133 million), while its annual growth rate declined (April 2010: 3.3%, March 2010: 3.5%, December 2009: 3.7%).

Consumer credit depicted also a negative net flow of €151 million (April 2009: plus €2 million), while the annual growth decelerated to 0.6% in April 2010, from 1.0% in March 2010 (December 2009: 2.0%).

Finally, the net flow of “other loans” to households was minus €5 million in April 2010 (April 2009: minus €20 million), while the annual rate of change accelerated to 2.6% from 2.1% in March 2010 (December 2009: -1.1%).

Bank credit to domestic enterprises and households: April 2010 - Table

Note: The statistics on credit expansion to domestic enterprises and households for the reference month of May 2010 will be published on 28 June 2010.

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