Irish property-related lending outstanding at the end of Q3 (third quarter) 2009 was 61% of total loan advances, while loans to manufacturing fell almost 18% in the 12-month period to September.

The Central Bank reported on Friday that Irish private banking loans to the construction and manufacturing sectors fell the most in the third quarter of the year.

Lending to property-related business sectors fell by €3.8 billion during Q3 2009. On an annual basis, credit to the construction and real estate sectors fell by 9% in the year to the end of the third quarter.

The bank said total property-related lending fell on a quarterly basis by €4.1 billion in Q3 2009. This compares with a fall of €1.9 billion in Q2 2009. Property related lending was 3.8% lower at end-Q3 2009 compared with end-Q3 2008.

The Central Bank said this is heavily influenced by the increased levels of bad debt provisions and write-downs of loans to the real estate and construction sectors in the past year.

Lending to the manufacturing sector fell 3.5% in the quarter and dropped 17.6% in the year to September.

Non-mortgage related household credit has declined in excess of 15% over the year ending Q3 2009.

The Central Bank said that total residential mortgages outstanding decreased by €380 million over the third quarter of 2009. The combined decline in mortgages for buy-to-let properties and holiday homes, of €623 million, was partially offset by a rise of €243 million in mortgages for principal dwelling houses. The annual rate of increase in residential mortgage lending declined to 0.3% in Q3 2009.