Lending decline continues

Latest figures from the Central Bank show that the rate of household lending continued to decline in April, down 4.6% on the same month last year.

However this was an improvement on the 5% decline seen in March.

Mortgage lending was down 2% on an annual basis in April, with lending for consumption and other purposes down by 13.4%.

Meanwhile the decline in lending to businesses accelerated, with a 2.2% drop in April, compared to a fall of 1.3% in March.

The annual rate of decline in private-sector deposits slowed to 9.1% at the end of April, following a decline of 10% over the 12 months ending March.

Credit institutions’ borrowings from the Central Bank as part of Eurosystem monetary policy operations fell by just under €5bn in April 2011, to €106bn.