ECONOMY

Demand for loans in Q3 is near zero

demand-for-loans-in-q3-is-near-zero

Demand for new loans in retail banking has practically frozen, as “just a handful of new loans have been issued,” a senior official at one of Greece’s systemic banks told Kathimerini while commenting on the credit contraction.

According to data compiled by Kathimerini, new mortgage loan disbursements in the domestic banking market amounted to just 80 million euros in the second quarter of the year, while consumer loans came to 90 million euros. In the third quarter of the year, which is about to end, there was a dramatic decline, as just 25 million euros has been disbursed for new mortgage loans and some 20 million euros for new consumer loans.

Bank officials stress that those disbursements, particularly regarding housing loans, concern demand expressed mainly before June, as the period between the application for and disbursement of a mortgage is usually at least a couple of months.

In the July-September period demand for loans has been practically nonexistent, which is not only due to the three-week bank holiday and the introduction of capital controls, but also the snap elections. This will likely be reflected to its full extent in the fourth quarter.