Macedonia's loan growth slows sharply in June

Macedonia's loan growth slows sharply in June
By Valentina Dimitrievska in Skopje July 21, 2016

The total value of non-government loans extended by Macedonian banks and saving houses went up by 3.5% y/y to MKD274.4bn (€4.4bn) at end-June, decelerating significantly from a 6.4% y/y increase at end-May, as loans to companies fell and the growth of household lending slowed, central bank data showed on July 21.

The total loan stock equalled to 46.3% of the projected 2016 GDP, down from 47.2% at end-May.

The slowdown of lending in part is probably a reaction to the uncertain political environment and the decrease in the deposit base. Also it is a reflection of the write-off of past due claims, according to the decision of the central bank (NBRM) adopted in December 2015, according to the NBRM.

The value of loans to non-financial corporations (public and private) edged down by 0.5% y/y in June, reversing a 2% growth in May, data showed. Month-on-month loans to companies declined by 2%.

Household lending growth decelerated to 8.8% y/y from 12.2% y/y in the previous month. On a monthly basis household loans fell 1.7%.

The currency breakdown showed that loans in denars grew 6.1% y/y to MKD222.1bn at end-June, after rising 9.2% y/y a month earlier.

Loans in foreign currency declined 6.5% y/y to MKD52.3bn, after falling 3.8% y/y at end-May.

Loans, MKD mn

 

 

 

 

 

 

June'15

May'16

June'16

% y/y

% m/m

TOTAL LOANS

265,254

279,646

274,453

3.5%

-1.8%

- in denars

209,249

225,215

222,108

6.1%

-1.4%

- in foreign currency

56,006

54,431

52,345

-6.5%

-3.8%

Nonfinancial Corporations

149,898

152,120

149,131

-0.5%

-2.0 %

Households

114,160

126,386

124,192

8.8%

-1.7%

Source: Central bank

 

 

 

   

Data

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