Credit Balance Down to 2005 Levels, While Default Stagnates at 13.5%

21/07/2014 – Expansion

In May, the credits granted to Spanish families and firms by banks, cooperatives and financial institutions continued to shrink. For the first time since 2005, the balance diminished from €1.400 billion to €1.390 billion, by 11.5 billion less than a month earlier. On the year-on-year basis, the fall in loans stands at 6.6%, according the the data published by Spain´s central bank.

Also, the default in banks went down by €2.3 billion to €187.9 billion. The obtained rate declined by only 5 bps and post 13.45%. If entities of other type included, it marks 13.39%.

In depository institutions, the rate marks 13.522%, whereas in the financial ones it stands at 10.795%.

 

Original article: Expansión (by M. Romani)

Translation: AURA REE

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