Private-sector credit grows in May
The adjusted annual growth rate of private-sector credit gained further momentum in June climbing to 24.8% from 23% in May, according to Central Bank figures.
A base effect, following a mortgage securitisation of €750m in June 2003, contributed to the acceleration in the growth rate.
There was continued strong demand for both mortgage and non-mortgage credit in June this year.
Demand for housing finance has been remarkably stable in the past year, expanding by around €1bn each month.
The year-on-year change in residential mortgages eased slightly to 27.3% in June compared with 27.5% in the previous month.
Short-term market interest rates were relatively unchanged in June, in line with key ECB interest rates.
Longer-term rates continued their gradual increase with 12-month rates rising by 12 basis points over the month.
Lending by the Central Bank to credit institutions, as part of the ECB’s monetary policy operations, fell by €145m in June.
