Credit expansion at 5.4% in September

The Bank of Greece said on 27 October that credit expansion growth, measuring funding to domestic enterprises and households, slowed further in September to 5.4%, from 6.0% in August and 15.9 % in December 2008. The central bank, in a monthly report, said funding to domestic enterprises totaled €1.05 billion in September, for an annual growth rate of 6.8%, down from 7.3% in August and 18.7% in December 2008. Bank lending slowed towards most business sectors, with the exception of the farm and other financial institutions where it rose, while it remained almost unchanged in the commerce sector (7.6% in September from 7.8% in August). Credit expansion in the manufacturing sector shrank 1.0% in September from 0.2% in August and 15.8% in December 2008, while in the construction sector it rose by 2.4% in September, from 5.1% in August and 35.2% in December 2008. Net funding towards Greek households totaled €529 million in September for an annual growth rate of 3.9%, compared with 4.7% in August and 12.8% in December 2008. Mortgage loans totaled €403 million (the second highest figure this year) for annual growth rate of 4.4% in September, from 4.8% in August and 11.5% in December 2008.