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Decreased demand for firms' loans drives decline in new loans

30/09/2021 15:44

Total new loans decreased to €278.4 million in August 2021, compared with €507.3 million in the previous month, the Central Bank reported Thursday. The decrease was a result of a significant decrease in firms’ loans and a decline in mortgage loans.

The Central Bank said that in August new loans for consumption decreased to €13.2 million, compared with €16.0 million July, whereas new loans for house purchase fell to €89.5 million, from €118.1 million.

According to the Central Bank, new loans to non-financial corporations for amounts up to €1 million recorded a decrease to €44.1 million in August, compared with €61.5 million in the seventh month of the year. New loans to non-financial corporations for amounts over €1 million fell to €118.8 million, compared with €302.2 million in the previous month.

Deposit Rates

The interest rate on deposits from households with an agreed maturity of up to one year remained unchanged in August at 0.07%, compared with the previous month.

The corresponding interest rate on deposits from non-financial corporations recorded a decrease to 0.05%, compared with 0.06% in July.

Lending Rates

The interest rate on consumer credit fell to 2.87% in the eighth month of the year, compared with 3.03% in the previous month.

The interest rate on loans for house purchase also decreased to 2.17%, compared with 2.21% in July.

The interest rate on loans to non-financial corporations for amounts up to €1 million rose to 3.33% from 3.30% in the previous month, while the interest rate on loans to non-financial corporations for amounts over €1 million fell to 3.04%, compared with 3.16% in July.