February lending to eurozone companies picks up

Eurozone enterprise loans accelerated in February, the most important annual price enhance in additional than two years, however remained low in peripheral Member States, in line with knowledge from the central financial institution.

In February, progress in loans to non-financial companies grew three.7% over the identical month final yr, recording a progress price greater than three.four% recorded the earlier month, revealed Thursday the figures of the ECB.

Bert Colijn, economist at ING, referred to as the figures "reduction," including that "fears of a decline in enterprise confidence, which would cut back borrowing, due to this fact appear to be somewhat uncovered.

Every financial knowledge level is carefully monitored to find out if the slowdown shall be short-lived.

Mario Draghi, President of the ECB, introduced on March 7 "data-driven" measures to keep away from a chronic slowdown, together with a brand new section of its longer-term refinancing operations looking for to assist to "protect the favorable situations of financial institution loans".

Knowledge by nation present unequal situations within the 19 Member States. Enterprise mortgage progress, corrected for securitization, elevated by greater than 6% in Germany and France, whereas it remained low in different international locations, notably Italy and Italy. Spain, the place it was stagnant or in contraction.

The expansion of lending to Italian and Spanish firms stays weak, despite the fact that these international locations had been the principle beneficiaries of earlier TLTRO applications.

Family loans rose from three.2% within the earlier month to three.three% in February.

The general cash provide grew at a mean annual price of four.three%, nicely above the expectations of three.9% of Reuters polls and better than the earlier month .

"A month is just not a development, however these knowledge counsel that the slim progress of the cash provide is stabilizing at a sluggish tempo, after a internet slowdown over the past 12 to 18 months" mentioned Claus Vistesen, Macroeconomics economist on the Pantheon.

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