Friday, January 31 11:38:47
The trend less credit and more debt pay-down continued throughout last year, latest figures from the Central Bank showed today.
Loans to households fell 4.1pc in the year, the figures show.
But Irish private sector deposits continued to rise, mainly driven by an increase in deposits from Non-Financial Corporations, it said. Household loan repayments exceeded drawdowns by E139 million during December 2013, following a net monthly decrease of E403 million in November. Developments in December reflect the decline in loans for house purchase, which fell by E167 million. Meanwhile, consumption related loans increased by E40 million over the month.
On an annual basis, lending to Irish households continued to fall, decreasing by 4.1pc in December, compared to an annual decline of 4.3pc in November. Loans for house purchase continued to be the main category driving the change, declining at an annual rate of 3pc. Lending for consumption and other purposes which accounts for approximately 23pc of total household lending, declined by 7.6pc over the year.
Looking at trends in business, on a monthly basis, NFC (non-financial corporations) loan repayments continued to exceed drawdowns.
Loans to non-financial corporations (NFCs) declined by E1.3 billion (1.6pc) in December 2013, compared to a monthly decline of E238 million (0.3pc) in November. Developments in December reflect decline across all maturity categories of NFC loans; short-term loans up to one year fell by E519 million (1.9pc), medium-term loans between one and five years fell by E490 million (2.4pc) and long-term loans over 5 years fell by E418 million (1.3pc).
Lending to Irish resident NFCs reported a year-on-year decline of 6pc in December 2013, following an annual decrease of 4.9pc in November.
There was an increase of E570 million in Irish resident private-sector deposits during December 2013. This was mainly owing to a rise in deposits from NFCs of E1.4 billion; household deposits also increased by E28 million over the month.
Credit institutions' borrowings from the Central Bank as part of Eurosystem monetary policy operations fell by E605 million in December 2013, the Central Bank said.