According to latest BoG data, credit contraction in the Greek market slightly decelerated to 4.6% y-o-y in November from 4.8% in October, with balances reaching €229.8bn corresponding to 117.7% of GDP. Loan balances eased 0.4% m-o-m with net flow retaining its downward trend for fifth consecutive month on net deductions of €0.72bn in November from €1.04bn in October and €0.47bn in September.

Individuals & private non-profit institutions’ lending growth remained on negative grounds, with balances reaching €106.7bn, down 0.5% m-o-m and 3.9% y-o-y (Oct: -4.1%). Monthly net deductions continued unabated for thirty-second consecutive month at €0.37bn in November almost stable over the past four months.

Housing loan balances contracted 0.3% m-o-m and 3.5% y-o-y (Oct: -3.7%) to €74.7bn. Deductions persisted for twenty-eighth month in a row at €0.22bn in November flat m-o-m.

Consumer credit slipped 0.4% m-o-m and 5.1% y-o-y to €30.4bn (Oct: -5.2%). Monthly net deductions remained stable m-o-m at €0.12bn.

Corporate lending outstanding balances retreated 0.3% m-o-m and 5.4% y-o-y (Oct: -5.6%) to €109.2bn, Monthly net flow remained negative with deductions easing to €0.34bn in November from €0.61bn in October.

Loans to sole proprietors stood at €13.8bn, down 0.1% m-o-m and 2.8% y-o-y (Oct: -3.6%). Monthly outflows stood at just €12m in November from €104m in October.

Lending constraints of Greek banks and tight liquidity conditions coupled with the prevailing recession and consumers’ reluctance to involve in any lending activity are the key reasons for negative credit expansion, on continued outflows in the household lending sector and negative – yet volatile – corporate lending flow.