Downward drift in private sector credit to continue

PRIVATE sector credit marked time in July, having risen marginally in June. Analysts see little change in the general downward drift in the figures, which are being sustained by the growth in mortgage lending.

For technical reasons, private sector credit increased from 11.8% in June to an annual growth rate of 12.5% last month. But when the exceptional item is removed, the Central Bank said the figures were flat. The figures at 12.5% compare with a European private

sector credit average of 4.9% and have a long way to go before they get down to those levels. Economists blame the decline in the economy for the slowdown in the figures.