Greece’s September Credit Expansion Slows
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, Bank of Greece said Tuesday.
“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,” it said in a statement.
Credit to enterprises
The net flow of credit to enterprises 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%).
(Capital.gr)