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Irish non-financial sector credit including residential mortgage lending outstanding continued to fall in April
By Finfacts Team
May 31, 2010 - 11:23:53 AM
Irish non-financial sector credit (NFC) credit, excluding valuation effects and the impact of transfers to the State toxic property loans agency NAMA, fell again in April, but at a slower pace than previous months so far in 2010. Residential mortgage lending outstanding (including securitised mortgages) declined by €348 million during April, bringing the annual rate of change in residential mortgage lending to minus 1.6 per cent.
The Central Bank said today that net flow of credit transactions during the month was just minus €109m (0.1 per cent), compared with minus €1.3bn (0.9 per cent) in March and minus €842mn (0.6 per cent) in February, implying repayments continue to exceed new lending. NFC credit outstanding on the aggregate balance sheet of Irish resident credit institutions was €134.2bn at end-April 2010, down from €139.5bn at end-March, with the transfer of loans to NAMA and an increase in impairment provisions accounting for almost the entire decline in outstanding amounts. The annual rate of change in NFC credit was minus 4.5 per cent in April, following a 4.6 per cent annual decline in March and a 3.6 per cent fall for the twelve months ending February 2010.
Residential mortgages (including securitised mortgages) declined by €348m during the month, and stood at €146.1bn at end-April 2010. The annual rate of change in mortgage lending fell to minus 1.6 per cent.
Repayments on personal credit cards were approximately €11m higher than new spending on credit cards during the month. This difference between repayments and new spending was smaller than in previous months (€71m in March and €26m in February 2010). The year-on-year change in personal credit card indebtedness increased in April to 0.1 per cent.
The Central Bank said the combined developments in both mortgage and non-mortgage credit during April, excluding valuation effects and the impact of NAMA transfers, led to a reduction of 0.3 per cent in total household credit during the month, with the net flow of credit transactions being minus €346m. On a year-to-year basis, household credit declined by 1.8 per cent in April 2010, following similar year-on-year declines in February and March 2010 of 1.8 per cent and 1.9 per cent, respectively.
