Credit expansion rate drops

Credit expansion rate slowed further in Greece in April to 3.2 pct, from 3.5 pct in March and 4.2 pct in December 2009, the Bank of Greece announced on Monday.
The central bank, in a monthly report, said credit expansion slowed both towards enterprises and households in the month.
New funding to domestic enterprises totaled 15 million euros, down from 446 million euros in April 2009, for an annual growth rate of 3.9 pct, from 4.3 pct in March and 5.1 pct in December 2009. All sectors suffered a slowdown in new funding, with the exception of “other financial institutions” where annual growth rate accelerated because of intra-group moves.

Credit expansion to the manufacturing sector was a negative 1.7 pct in April, from -1.3 pct in March and -3.5 pct in December 2009, followed by the commerce sector (-0.8 pct in April, 0.5 pct in March and 4.2 pct in December 2009). Credit expansion was almost unchanged in the construction sector (3.3 pct in April from 3.4 pct in March and 2.7 pct in December 2009), while credit expansion to the shipping sector slowed significantly to 0.7 pct in April from 2.3 pct in March and 4.0 pct in December 2009.

Net new funding to households was a negative 174 million euros in April, for an annual growth rate of 2.5 pct in the month, down from 2.7 pct in March and 3.1 pct in December 2009.
Net new mortgage funding was a negative 18 million euros in April for an annual growth rate of 3.3 pct, from 3.5 pct in March and 3.7 pct in December 2009, while consumer loans recorded a negative net flow of 151 million euros (0.6 pct in April from 1.0 pct in March and 2.0 pct in December 2009.


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