According to the latest data just released by BoG, total credit rose 0.2% m-o-m, yet eased 1.9% y-t-d and 2.2% y-o-y in September (Aug: -1.3% y-o-y) reaching €252.9bn, which corresponds to 113.9% of GDP from 107.7% at YE ‘09.

Euroxx Research point out that deductions continued unabated across the board reaching €1,059m in September from €1,310m in August and marginal net inflows of €13m in July. In particular:

• Corporate lending outstanding balances rose 1.1% m-o-m, yet slipped 0.5% y-t-d and 0.9% y-o-y (Aug: +0.5% y-o-y) to €122.7bn, corresponding to 55.2% of GDP. Furthermore, business lending accounts for 48.5% of total credit. Monthly net flow remained negative with deductions of €584m in September from €690m in August and additions of €564m in July.

• Loans to sole proprietors stood at €15.7bn, down 0.8% m-o-m, 4.7% y-t-d and 5.1% y-o-y (Aug: -4.0%), accounting for 6.2% of total credit and corresponding to 7.1% of GDP. Monthly net deductions stood at €108m in September from €143m in August and €53m in July.

• Individuals & private non-profit institutions’ lending growth continued its downward trend, with balances reaching €114.6bn, down 0.6% m-o-m, 3.0% y-t-d and 3.1% y-o-y (Aug: -2.9% y-o-y), corresponding to 51.6% of GDP. Moreover, household lending accounts for 45.3% of total credit. Monthly net deductions continued unabated for eighteenth consecutive month at €367m in September from €476m in August and €497m in July.

• Outstanding balances in housing loans contracted 0.5% m-o-m, 1.7% y-t-d and 2.1% y-o-y (Aug: -2.1% y-o-y) to €79.2bn and correspond to 35.7% of GDP, while account for 69.1% of household lending and 31.3% of total credit. Deductions continued for fourteenth month in a row at €119m in September from €205m in August and €258m in July.

• Consumer credit slipped 0.6% m-o-m, 4.0% y-t-d and 6.5% y-o-y (Aug: -6.6% y-o-y) to €33.7bn. Consumer credit corresponds to 15.2% of GDP, while accounts for 29.4% of household lending and 13.3% of total credit. Monthly net deductions stood at €132m in September from €251m in August and €315m in July. According to BoG, banks reclassified loans from other loans to consumer credit in August 2011, which probably explains the m-o-m increase in the previous month.