BRATISLAVA, July 29, (WEBNOVINY) — Not even the sixth month of 2010 brought unambiguous trends of recovery to the sector of corporate lending, stated the National Bank of Slovakia (NBS). The volume of newly provided loans grew both in yearly and monthly terms but the overall balance of outstanding loans decreased in both comparison bases, and the rate of decline has been accelerating for five successive months. New loans for companies were growing in June for the second month in a row, 22.4 percent on a year-on-year basis in May and 23.4 percent in June, when they reached EUR 793 million. The growth of the newly provided loans, however, has not been reflected in the overall balance of outstanding loans in any way. On the contrary, it has been going down in monthly terms (1 percent) as well as in yearly terms (4.2 percent), while it achieved only EUR 11.227 billion. “On a year-on-year comparison, the decrease has been continually deepening for five months in a row,” the NBS informed in a report prepared for Cabinet’s meeting.
The volume of new retail loans has been continually growing since the beginning of the year. In June, the National Bank of Slovakia reported the highest volume of provided loans since March 2008 in the overall volume as well as in particular categories of loans. “After a two-month decrease, consumer loans started growing again, which was reflected in the highest monthly change from among monitored loans,” the central bank stated. In June, new retail loans increased 9 percent to EUR 480 million. On a year-on-year basis, their volume increased 36.5 percent. Development of new loans was also mirrored in the overall balance of outstanding loans which grew in both comparison bases. The overall balance of retail loans achieved a monthly growth of 1.4 percent to EUR 13.076 billion.
Slight acceleration of growth of the overall state of loans as well as the real estate loans and other loans can be observed since March of this year, the central bank said. “On the contrary, the growth of the balance of consumer loans has been decelerating since February of this year. However, this development can also be influenced by the change in the reporting of one bank in May 2010,” NBS stated.
SITA
