Greek loan expansion remained on negative grounds in June

According to BoG, total credit eased 0.8% m-o-m and 4.3% y-o-y in June (May: -4.5% y-o-y) reaching €240.2bn. Net flow rebounded with net additions reaching €851m in June, from net deductions of €940m in May, entirely attributed to corporate lending inflows of €1,067m, while household net flow remained on negative grounds (-€265m) for twenty-seventh consecutive month.

More specifically, corporate lending outstanding balances slipped 1.4% m-o-m and 4.1% y-o-y to €114.6bn. Monthly net flow turned positive with net additions at €1,067m in June from net deductions of €544m in May. Loans to sole proprietors stood at €15.0bn, up 0.2% m-o-m, yet down 5.4% y-o-y. Monthly flow remained below the €100m mark, with inflows at €49m in June from outflows of €25m in May.

Individuals & private non-profit institutions’ lending growth retained its downward trend, with balances reaching €110.6bn, down 0.2% m-o-m and 4.4% y-o-y. Monthly net deductions continued unabated for twenty-seventh consecutive month at €265m in June from €371m in May. Outstanding balances in housing loans contracted 0.2% m-o-m and 3.5% y-o-y to €77.0bn. Deductions continued for twenty-third month in a row at €109m in June from €262m in May. Consumer credit slipped 0.5% m-o-m and 6.3% y-o-y to €31.7bn. Monthly net deductions increased to €162m in June from €128m in May.

Given the lending constraints of Greek banks and tight liquidity conditions along with the prevailing macro uncertainty and consumers’ reluctance to involve in any lending activity, I retain my view for lending growth at negative levels, hovering at 4-5% in the coming months, on continuing outflows in the household lending sector, while corporate lending flow volatility is expected to continue.

Advertisements
This entry was posted in Greek banks, Greek economy and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s