Borrowing levels break records

Irish people are continuing to borrow at record levels, according to figures published today by the Central Bank.

The bank said private-sector borrowing had increased by 26.5% between December 2003 and December 2004, compared to a 17.9% increase over the previous 12-month period.

It said an extra €37bn was lent out by financial institutions during 2004.

The main driving force behind the increased borrowing was demand for non-mortgage credit such as personal loans, overdrafts and credit cards.

The level of this credit increased by 24.2% between December 2003 and December 2004, compared to 13.5% in the previous 12-month period.

Elsewhere, the Central Bank said the amount of money lent out in residential mortgages increased by 26.5% to €16.4bn in the year to December, a slight increase on the 25.5% rise over the previous 12 months.

It said the level of mortgage lending increased by €1.6bn in December alone, one of the largest monthly increases on record.