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Irish households borrowed nearly €1bn less in January

Central Bank figures have also revealed that household lodgements increased by 1.2 per cent over the same period.

The Governor of the Central Bank, Professor Patrick Honohan (file photo)
The Governor of the Central Bank, Professor Patrick Honohan (file photo)
Image: Sasko Lazarov/Photocall Ireland

LOANS TO IRISH households declined by €816 million during January, the latest Money and Banking Statistics release from the Central Bank has revealed.

The January decrease was over twice the net monthly decrease of €372 million in December 2012. Housing related loans in January dropped by €405 million, while consumption related loams decreased by €344 million.

Other loans decreased by €68 million over January.

Over the three months from November 2012 to January 2013 (inclusive), the net flow of household loans dropped, on average, by €135 million in house purchase loans, €205 million in loans for consumption purposes, and €144 million in lending for other purposes.

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(Money and Banking Statistics – January 2013)

Non-financial corporations

Lending to NFCs resident in Ireland dropped by €214 million, or 3.3 per cent in January, compared to a drop of 3.6 per cent in December.

Over the three months from November 2012 to January 2013 (inclusive), the net flow of these loans dropped by an average of €104 million. This average drop was much lower than the average drop of €184 million which was observed over the three month period from October to December 2012.

This drop was due to the maturity of nearly €1.2 billion in loans. Short-term loans (maturity of less than one year) increased by €372 million in January, with longer-term loans (maturity of over five years) rising by €583 million.

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(Money and Banking Statistics – January 2013)

Deposits and other funding

Private-sector deposits by those resident in Ireland rose at an annual rate of 3.7 per cent in January, an increase on the 2.5 per cent increase in the year which ended December 2012.

This equated to a month-on-month increase of nearly €1.4 billion

Deposits from households were 1.2 per cent higher annually at January end, while deposits from insurance corporations and pension funds (ICPFs) and other financial intermediaries (OFIs) increased by 8.2 per cent.

Deposits from NFCs also rose by 5.2 per cent.

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(Money and Banking Statistics – January 2013)

Money borrowed from the Central Bank by credit institutions as part of Eurosystem monetary policy fell by €4.3 billion in January, with outstanding stock amounting to €67.1 billion, €55.7 billion of which was held by domestic credit institutions.

Read: ‘Under-collection error’ means 1,300 Ulster Bank customers face €41m bill >

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