Macedonia's loan growth slows to 8.4% y/y at end-July 2014

By bne IntelliNews August 22, 2014

The total value of outstanding non-government loans extended by Macedonian banks and saving houses increased by 8.4% y/y to MKD 243.9bn (EUR 3.97bn) at end-July 2014, marginally slowing down from an 8.5% y/y growth at end-June, central bank data showed. The total loan stock is equal to 49% of the projected 2014 GDP, up from 48.9% at end-June.

Loans to non-financial corporations (public and private) rose 6.0% y/y to MKD 140.2bn at the end of last month, slowing from a 6.1% y/y rise at end-June. Loans to households increased 11.8% y/y to MKD 102.6bn with the annual growth rate unchanged from end-June.

The other components of the total loan stock include credit to financial corporations (down 5.6% y/y to MKD 223mn at end-July), loans to non-profit institutions serving households (down 6.9% y/y to MKD 127mn) and credit to local governments (up 39% y/y to MKD 795mn).

The currency breakdown of the total loan stock showed slower annual growth of the local currency portion, but also a smaller y/y decrease in the foreign currency component. Local currency loans rose 11.3% y/y to MKD 188.9bn at end-July, decelerating from an 11.8% y/y increase a month earlier. Foreign currency loans edged down 0.3% y/y to MKD 55bn at the end of last month, after shrinking 1.4% y/y at end-June.

Loans, MKD mn          
  Jul'13 Jun'14 Jul'14 % y/y % m/m
TOTAL LOANS 224,897 243,267 243,879 8.4% 0.3%
- in denars 169,712 188,320 188,858 11.3% 0.3%
- in foreign currency 55,186 54,947 55,020 -0.3% 0.1%
Nonfinancial Corporations 132,197 140,545 140,152 6.0% -0.3%
- in denars 83,338 91,912 91,409 9.7% -0.5%
- in foreign currency 48,859 48,633 48,743 -0.2% 0.2%
Households 91,756 101,579 102,582 11.8% 1.0%
- in denars 85,494 95,376 96,416 12.8% 1.1%
- in foreign currency 6,262 6,203 6,166 -1.5% -0.6%
Source: Central bank          

Related Articles

ArcelorMittal proposes to divest assets in Czech Republic, Macedonia and Romania

International steel and mining company ArcelorMittal said on April 13 it has proposed a divestment package to the European Commission in a bid to obtain approval for its planned acquisition of ... more

Macedonian MPs debate no-confidence motion against government

Macedonian MPs started debating a no-confidence motion filed by the opposition VMRO-DPMNE party against the government on April 11. The opposition party accused the government of increasing crime and ... more

Bulgaria’s Borissov appeals to Western Balkan leaders to preserve peace

Boyko Borissov, prime minister of the current EU Council chair Bulgaria, called on April 10 on the leaders of the Western Balkan countries to preserve peace and ... more