Eurozone credit growth remains brisk despite gloomy outlook

BANK lending to eurozone companies held steady, maintaining the sector’s biggest borrowing binge in over a decade, despite rising interest rates and a looming recession, European Central Bank data showed on Monday (Nov 28).

Lending to businesses in the 19-country euro area expanded by 8.9 per cent in October, unchanged on September when it rose to its highest rate since early 2009, fresh data showed. Household credit growth meanwhile slowed to 4.2 per cent from 4.4 per cent.

The monthly flow of loans to companies, however, slowed sharply, to 24.0 billion euros from 36.6 billion a month earlier with the flow of short term loans coming to a standstill.

Growth in the M3 measure of money circulating in the eurozone, meanwhile slowed to 5.1 per cent from 6.3 per cent, coming well under expectations for 6.2 per cent in a Reuters survey. REUTERS