Review Hari Stefanatos
An increase for the fourth consecutive month showed the deposits in May according to data from the Bank of Greece (BoG). It amounted to 162.1 billion from 161.4 billion, an increase of about 700 million. Meanwhile there was a recorded decrease in the credit expansion based on the data of the BoG.
There had been a further “cut” in the financing of households and businesses in May. According to data from the Bank of Greece, the annual rate of change of the total funding of the domestic private sector, in May 2014, stood at -3.5% compared to -3.7% in the previous month.
The net flow of credit to businesses, in May 2014, was negative by 801 million euros (May 2013: negative net flow of 1,209 million euros) and the annual growth rate stood at -4.5%, from -4, 8% in April 2014. In particular, the annual growth rate of credit to non-financial corporations stood at -4.4%, from -4.6% in the previous month and the net flow of their financing was negative by 793 million (May 2013: negative net flow of 1,042 million euros). The annual growth rate of credit to insurance companies and other financial institutions stood at -5.2% in May 2014, from -7.5% in the previous month.
Financing in households decreased by 3%, resulting in their total debt to mortgages and consumer loans dropping below the 100 billion euros limit (99.9 billion euros).
Specifically, mortgage loans decreased by 3.2% and consumer loans by 2.8%.
(Source: STAR, In, AMNA)