Slovakia's annual credit growth turns negative in April 2013

By bne IntelliNews May 31, 2013

The total value of outstanding bank loans in Slovakia fell 0.3% y/y to EUR 42.05bn as of end-April 2013, recording its first annual decline since November 2010, data by the central bank showed. In March, the value of outstanding bank loans grew 1.1% y/y. Commercial banks' corporate loan book narrowed by 3.4% y/y as of end-April, deepening from a 1.5% y/y decline in the previous month. The yearly growth in lending to households accelerated slightly to 9.4% from 9% in March.

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

In April alone, the Slovak banks extended a total of EUR 1.51bn in new loans, compared to EUR 1.57bn in March and EUR 1.41bn April in 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 are also exerting pressure on the lending market.

Loans granted, outstanding amounts, EUR mn   Apr-13 Mar-13 Apr-12 y/y change m/m change
Loans - total 42,048.6 42,230.9 42,159.1 -0.3% -0.4%
Loans to non-financial corporations 15,760.3 15,937.4 16,307.5 -3.4% -1.1%
Loans to households 19,189.7 19,046.6 17,548.4 9.4% 0.8%
Loans for house purchase 17,074.2 16,993.7 15,679.5 8.9% 0.5%
Consumer loans 2,591.7 2,562.8 2,271.5 14.1% 1.1%
New Loans, EUR mn          
New Loans - total 1,507.2 1,574.9 1,414.4 6.6% -4.3%
--operating loans 697.0 822.1 683.6 2.0% -15.2%
--investment loans 78.7 99.1 129.1 -39.0% -20.6%
--consumer loans 128.3 135.5 100.0 28.3% -5.3%
--loans for house purchases 428.0 407.2 412.9 3.6% 5.1%
----mortgages 79.3 68.4 62.7 26.4% 15.8%
----building loans 2.9 1.5 4.0 -28.3% 99.2%
----intermediate loans 59.0 46.3 55.1 7.0% 27.5%
----other loans for house purchases 286.8 291.0 291.1 -1.5% -1.4%
--other loans 175.2 111.0 88.9 97.2% 57.9%
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. Iran vs Israel: Who is better equipped for war?
    4 days ago
  2. Saudi Arabia to scale back plans for Neom city
    8 days ago
  3. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  4. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    4 days ago
  5. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    6 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    19 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    23 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    28 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    21 days ago

Reports

Dismiss