The stock of loans extended to Kosovo's private sector rose 4.1% y/y to EUR 1.75bn at end-April 2013, central bank data showed. This is an all-time low for the private sector credit growth, which has been speeding up at a double-digit pace throughout 05'-08' but as the recession hit it began steadily decelerating.
In monthly terms, the non-government loan stock increased for a third consecutive month, up by 1.2% in April. However, the monthly improvement is not enough to reverse the underlying long-term trend of slowing credit supply growth. In that context, new loans (without overdrafts and credit lines) extended in Jan-Apr amounted to EUR 234.7mn, which was virtually the same as a year earlier.
Outstanding credit extended to corporations increased by 3.9% y/y to EUR 1.2bn at-end April. The central bank breakdown showed that loans approved to Kosovo's wholesale and retail sector increased 4.6% y/y to EUR 650mn, while the volume of industry loans declined 0.2% y/y to EUR 296mn. The value of loans to construction companies deteriorated significantly, sinking by 21% y/y to EUR 102mn.
Furthermore, household loans climbed 4.5% y/y to EUR 551mn at-end April.
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