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Central Bank says Irish Non-Financial Credit fell again in May; Residential mortgages dipped €352m to €145.8bn
By Finfacts Team
Jun 30, 2010 - 11:02:10 AM
The Central Bank said today that Irish
Non-Financial Credit (NFC), excluding valuation effects and the impact of NAMA
transfers, fell again in May. Residential mortgages (including securitised
mortgages) dipped by €352m during the month, and stood at €145.8bn at end-May
2010, compared with €144.4bn in May 2008.
The net flow of credit transactions during
the month was minus €214m (0.2 per cent), compared with a revised positive flow
of €305m in April and minus €470m (0.3 per cent) in March. NFC credit
outstanding on the balance sheet of Irish resident credit institutions was
€128.5 billion at end-May 2010, down from €134.2 billion at end-April, with the
transfer of loans to NAMA (the State toxic property loans agency) 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 3.4 per
cent in May, following a revised 3.3 per cent annual decline in March and a 2.9
per cent fall for the twelve months ending April 2010.
The Central Bank said residential mortgages
(including securitised mortgages) declined by €352m during the month, and stood
at €145.8bn at end-May 2010. The annual rate of change in mortgage lending fell
to minus 1.8 per cent.
Repayments on personal credit cards were
approximately €56m higher than new spending on credit cards during the month.
The year-on-year change in personal credit card indebtedness fell in May to
minus 0.4 per cent. The number of personal credit cards in issue has declined by
over two per cent over the twelve months ending May 2010, and this has driven a
rise in the average outstanding debt on personal credit cards of 1.8 per cent
over the period.
The combined developments in both mortgage
and non-mortgage credit during May, excluding valuation effects and the impact
of NAMA transfers, led to a reduction of 0.2 per cent in total household credit
during the month, with the net flow of credit transactions being minus €274m. On
a year-to-year basis, household credit declined by 1.5 per cent in May 2010,
following year-on-year declines in March and April 2010 of 1.5 per cent and 1.4
per cent, respectively.
