Lending to the private sector, excluding borrowing by firms based in the International Financial Services Centre, grew by 0.7 per cent in November 2001, according to the latest data from the Central Bank.
While the growth is somewhat stronger than in November 2000, it is relatively subdued compared with the same month in previous years, the Bank said.
Lending by credit institutions in Ireland to non-Government Irish residents rose by €2,209 million (£1,740 million) to €126,788 million in November 2001.
Overall, this represents a rise of 1.8 per cent, compared with a fall of 0.4 per cent in the same month last year. The weakness of credit in November 2000 reflected the impact of one exceptional item, according to the Central Bank - a restructuring of intra-group funding cut non-Government credit by around €1,200 million in that month.
Lending to IFSC entities contributed substantially to credit growth in November 2001, rising by €1,442 million.
The main contributor to the rise in non-Government credit in November was term and revolving loans which rose by €1,579 million. Residential mortgages grew by €460 million.
Adjusted for securitisations, mortgages rose by 1.1 per cent, compared with growth of 1.8 per cent in November 2000.
Overdrafts rose by €99 million, other mortgages by €56 million and loans up to and including one year by €45 million.
Funds advanced under repurchase agreements rose by €36 million in November 2001 compared with a fall of €149 million in the same month last year.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)