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Dublin: 13°C Wednesday 28 July 2021

Irish people repaid €335m more than we borrowed last month

We all partied, eh?

Image: Shutterstock/igor.stevanovic

BANK LENDING CONTINUED to decline in November, with loan repayments far outpacing borrowing.

Loan repayments for households outpaced new drawdowns by €335 million last month, compared to a decline of €520 million in October.

The figures are included in the Central Bank’s Money and Banking Statistics, which were released today.

Loans to non-financial corporations exceeded repayments for a second consecutive month in November, reversing a trend of steady decline over recent months. Lending to households continued to decline during the month with non-housing loans falling faster than loans for mortgages.

Developments in November were driven by declines in loans for house purchase and loans for ‘other purposes’ of €156 million and €160 million respectively.

In the case of loans for house purchase, repayments have exceeded drawdowns by €2.2 billion for the year to date. Repayments have also exceeded drawdowns by €1.6 billion for non-housing loans to households, in the year to the end of November.

On an annual basis, lending to Irish households continued to fall, decreasing by 3.8% last month.

Loans for house purchase, which account for 81% of total household loans, declined at an annual rate of 2.9%. Continuing the pattern, lending for consumption and other purposes declined by 7.1% year-on-year.

Overall, lending to non-financial corporations was down year-on-year, falling 6.4% by November.

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Órla Ryan

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