Corporate lending in Slovenia shows slight upturn in July

Corporate lending in Slovenia shows slight upturn in July
By Ivana Jovanovic in Belgrade September 23, 2016

Corporate bank lending in Slovenia revived slightly in July when the volume of corporate loans inched up to €12.85bn from €12.75bn in June, the Slovenian central bank Banka Slovenije (BS) announced on September 22 in its latest monthly report on the banking sector. 

Corporate lending fell steadily in the two years following the December 2013 bank bail-in, as banks imposed stricter criteria for companies seeking loans. However, the volume of corporate loans appeared to bottom out in the first half of 2016. 

The amount of corporate loans declined in 2015, from €14.69bn in 2014 to €13.5mn at December 31, 2015.

The negative trend continued in January and February 2016. In March the trend briefly turned positive, but the negative trend resumed in May and June, though the decline was only moderate.

The BS’s latest data showed that the share of corporate loans in total loans in July was 38.3%, the same as in June which saw a modest raise against the 38.2% recorded in May.

The share of bad loans in the corporate sector in the seventh month of 2016 went down to 10.7% from 12% in the sixth month and 12.2% in the fifth.

The value of corporate loans on which repayments have been delayed for over 90 days in July amounted to €1.38bn, down from €1.53bn in June and €1.57bn in May.

Slovenian banks' lending in July totalled €33.56bn, up from €33.29bn in June, the BS data indicate.