Loans to households continued to fall in June, but the pace of decline moderated slightly, and company loans rose for the first time in a year.

Data from the Central Bank showed loans to households were 3.9 per cent lower year on year, but the decline slowed from 4.8 per cent in May. Lending for house purchases was 2.2 per cent lower, and lending for consumption and other purposes fell by 9.2 per cent.

The figures showed a net flow of minus €196 million in loans to households over the month of June, as loans for house purchases fell by €127 million and consumption loans were down €69 million. Lending to households for other purposes was relatively unchanged, the bank said.

Although lending to non-financial corporates fell by 3 per cent in the year ending June 2011, on a monthly basis, loans were up by €343 million. In contrast, May saw a decline of €87 million.

During the month, short-term loans - including overdraft facilities - rose by €265 million, while medium term loans were €80 million higher.

Longer-term loans, with an original maturity of over five years, showed a decline of €3 million in the month.

Over the year, the rate of fall in longer-term loans eased to 6 per cent. However, lending of between one and five years showed a growing decline,the annual rate of decline in Irish resident private-sector deposits continued to pick up pace, reaching 10 per cent at the end of June compared with 8.7 per cent over the 12 months to the end of May.

The Central Bank figures also showed deposits from households were down 5.1 per cent last month, and company deposits were 13 per cent lower.

The data also showed a 17.3 per cent decline in deposits from other financial institutions, and insurance corporations and pension funds. falling by 7.7 per cent in June.