Growth of Macedonian banks' loan portfolios accelerates further in June

Growth of Macedonian banks' loan portfolios accelerates further in June
By bne IntelliNews July 21, 2017

The total value of non-government loans provided by Macedonian banks and savings houses went up by 4.4% y/y to MKD286.4bn (€4.6bn) at the end of June, speeding up from a 1.5% y/y a month earlier, central bank data indicated on July 21.

The annual changes to the loan portfolio reflect the effects of the central bank's measures to further cut the non-performing loan (NPL) ratio. Without this, the annual credit growth in June would have been 10.9% higher. 

On a monthly basis, the total value of loans increased by 0.9% in June, after rising by 0.8% y/y a month earlier.

The value of loans to non-financial corporations (public and private) edged up 0.1% y/y to MKD149.2bn in June, after falling by 2.8% y/y a month earlier.

On a monthly basis, corporate lending rose by 0.9%, due to the growth of denar denominated loans.

Household lending went up by 9.5% y/y to MKD136bn, after rising by 6.7% y/y in May. On a monthly basis, household loans increased by 0.8%, following a 1.3% m/m increase in the previous month.

The currency breakdown indicated that loans in denars grew by 6.6% y/y to MKD236.8bn at end-June, speeding up from a 4.1% increase a month earlier.

Loans in foreign currency fell by 5.1% y/y to MKD49.6bn, narrowing from a 9.2% y/y decline at end-May. On a monthly basis, loans in both local and foreign currency increased.