Macedonia's loan growth accelerates to 7.6% y/y at end-May 2014

By bne IntelliNews June 23, 2014

The total value of outstanding non-government loans extended by Macedonian banks and saving houses increased 7.6% y/y to MKD 240.1bn (EUR 3.89bn) at end-May, speeding up from a 7.1% y/y growth at end-April, as credit to both nonfinancial corporations and households grew faster, preliminary central bank data showed. The total loan stock is equal to 48.9% of projected 2014 GDP, up from 48.1% at end-April.

Loans to non-financial corporations (public and private) rose 4.8% y/y to MKD 138.8bn at the end of last month, quickening from a 4% y/y rise at end-April. In addition, loans to households increased 11.6% y/y to MKD 100.2bn at end-May, slightly accelerating from an 11.5% y/y growth a month earlier.

The other components of the total loan stock include credit to financial corporations (down 2.5% y/y to MKD 230mn at end-May), loans to non-profit institutions serving households (down 8.4% y/y to MKD 148mn) and credit to the local governments (up 48.9% y/y to MKD 695mn).

The currency breakdown of the total loan stock showed faster annual growth of the local currency portion and a smaller y/y decrease in the foreign currency component. Local currency loans rose 10.5% y/y to MKD 185.8bn at the end of last month, accelerating from a 10.1% y/y growth at end-April. Foreign currency loans fell 1.2% y/y to MKD 54.3bn at end-May, after contracting 2% y/y a month earlier.

Loans, MKD mn          
  May'13 Apr'14 May'14 % y/y % m/m
TOTAL LOANS 223,072 236,230 240,097 7.6% 1.6%
- in denars 168,116 182,543 185,816 10.5% 1.8%
- in foreign currency 54,956 53,687 54,281 -1.2% 1.1%
Nonfinancial Corporations 132,435 136,535 138,826 4.8% 1.7%
- in denars 83,879 89,069 90,806 8.3% 2.0%
- in foreign currency 48,556 47,466 48,020 -1.1% 1.2%
Households 89,772 98,619 100,198 11.6% 1.6%
- in denars 83,435 92,486 94,029 12.7% 1.7%
- in foreign currency 6,338 6,133 6,169 -2.7% 0.6%
Source: Central bank          

Related Articles

Macedonia’s ex-PM Gruevski fears for his life, asks for additional bodyguards

Macedonian ex-prime minister and opposition leader Nikola Gruevski is seeking at least 20 more bodyguards from the state police, as he says he fears his life is threatened. Gruevski, leader of the ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Macedonia’s opposition VMRO-DPMNE tries to block parliament's work

Macedonia’s opposition VMRO-DPMNE party is trying to block the work of the parliament by forming 10 parliamentary groups instead of the single group that is normal for a political party.  ... more