Bank credit tap only dripping
Annual credit expansion to the private sector continued to slow in October, dropping to 4.4 percent year-on-year from 5.4 percent in September, the Bank of Greece said yesterday. It stood at 15.9 percent last December. Businesses and households owed banks 251.5 billion euros at the end of October, versus 249.6 billion at the end of last year, the central bank said. Banks have been keeping a tight grip on lending, fearing customers won’t be able to pay back loans. Annual credit growth to households decelerated to 3.3 percent in October, from 3.9 percent in September, as 106 million euros of new mortgages and other consumer loans was pumped into the economy. In the business sector fresh funds were scarce, with annual loan growth dropping to 5.4 percent.
