Households continued to make loan repayments at a quicker rate than new loans were issued in November, continuing the trend of paying down debt though at a slower pace than that seen in the previous month.
According to figures published by the Central Bank yesterday, loans to households continued to decline during the month with non-housing loans falling faster than mortgage loans.
Overall, repayments by households exceeded loan drawdowns by €335m during November.
While the trend of paying down debt continued in November, the rate at which this took place slowed from the €520m net decline in October.
The developments in November were driven by declines in loans for house purchases and loans for other purposes of €156m and €160m.
In the case of mortgage loans, repayments have exceeded drawdowns by €2.2bn for the year to date while repayments on non-housing loans to households have also exceed drawdowns in the year to the end of November, by €1.6bn.
Lending to households also continued to fall, falling 3.8% in November. The decline is attributable to decreases in loans for house purchases — which account for 81% of total household loans and which declined by almost 3% annually — and lending for consumption and other purposes which dropped by more than 7%.
Meanwhile, non-financial corporations loan drawdowns exceeded repayments by €139m in November after a net increase of €261m in October. Lending to Irish resident non-financial corporations fell 6.4% year-on-year to the end of November, down from 6.9% the previous month. The falloff was seen across short, medium and long-term lending with non-financial corporations decreases of 9.3%, 3.4% and 5%.
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