Slovakia's annual credit decline deepens to 2.9% in May 2013

By bne IntelliNews July 1, 2013

The total value of outstanding bank loans in Slovakia fell 2.9% y/y to EUR 41.76bn as of end-May 2013, following a 0.3% annual decline in April, which was their first annual decrease since November 2010, data by the central bank showed. Commercial banks' corporate loan book narrowed by 3.9% y/y as of end-May, deepening from a 3.4% y/y decline in the previous month. The yearly growth in lending to households remained flat compared to April at 9.4%.

On a monthly basis, the total value of outstanding bank loans fell 0.7% in May, following a 0.4% decline in April.

In May alone, the Slovak banks extended a total of EUR 1.49bn in new loans, compared to EUR 1.51bn in April and EUR 1.18bn in May 2012.

IntelliNews comment: The lending activity in Slovakia's banking sector weakened last year given the fragile domestic economic situation, deteriorating outlook and mounting risks in the external environment. The outstanding amount of corporate loans fell mainly due to the tightening of credit standards.

We expect the lending market to be sluggish this year as corporate credit growth is set to hold back in line with the economic slowdown, which may also affect retail lending, as demand for loans might dwindle in a weakening labour market. New, stricter bank regulations and increased risks from default are also exerting pressure on the lending market.

Loans granted, outstanding amounts, EUR mn   May-13 Apr-13 May-12 y/y change m/m change
Loans - total 41,762.8 42,048.6 43,013.6 -2.9% -0.7%
Loans to non-financial corporations 15,671.9 15,760.3 16,312.0 -3.9% -0.6%
Loans to households 19,374.4 19,189.7 17,707.3 9.4% 1.0%
Loans for house purchase 17,239.0 17,074.2 15,806.6 9.1% 1.0%
Consumer loans 2,621.5 2,591.7 2,299.7 14.0% 1.1%
New Loans, EUR mn          
New Loans - total 1,490.8 1,507.2 1,177.1 26.6% -1.1%
--operating loans 664.2 697.0 410.0 62.0% -4.7%
--investment loans 59.4 78.7 101.3 -41.3% -24.5%
--consumer loans 128.0 128.3 112.1 14.1% -0.3%
--loans for house purchases 500.5 428.0 419.4 19.3% 17.0%
----mortgages 84.7 79.3 76.1 11.3% 6.9%
----building loans 2.3 2.9 2.8 -20.0% -21.5%
----intermediate loans 48.3 59.0 57.6 -16.2% -18.2%
----other loans for house purchases 365.3 286.8 282.8 29.2% 27.3%
--other loans 138.7 175.2 134.3 3.3% -20.8%
Source: National Bank of Slovakia          
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

How Ukrainian grain wrecked the Polish grain market

The Polish grain market has been thrown into disarray by cheap Ukrainian grain that sent prices plummeting in April, causing Warsaw to impose a five-month ban, backed up by the European Commission. ... more

Slovak OFZ aims to move part of production to Uzbekistan

Metallurgical company OFZ plans to transfer part of its production from Slovakia to Uzbekistan, The Slovak Spectator has reported. The ferroalloy production company from Oravsky Podzamok has ... more

EBRD 2023: EBRD, EU and ILX to co-operate to boost private-sector finance in Emerging Europe

The European Bank for Reconstruction and Development (EBRD), the European Union, and ILX Management, an emerging market asset manager, have joined forces to enhance private-sector finance in Emerging ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    7 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    7 days ago
  4. Don't mention the "D" word - Ukraine
    4 days ago
  5. UBN: The US Needs to Wake Up
    5 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    25 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    29 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    27 days ago
  5. Saudi Arabia to scale back plans for Neom city
    14 days ago

Reports

Dismiss