Bank lending falls to record low

Bank lending fell to another record low in June, the latest official figures revealed today.

The value of outstanding mortgage loans fell by €62 million in June, the third consecutive month of decline, according to new data.

Monthly figures from the Central Bank show that as with May repayments outstripped the value of new lending in June.

Mortgage debt has remained relatively stable since the beginning of the year, rising by just €234 million in the first half of the year, compared with €5.5 billion for the same period in 2008.

The annual rate of growth in mortgage lending fell to a record low of 1.9 per cent in June, compared to 2.6 per cent the month before.

Total lending fell by €1.4 billion as against €1.6 billion in May. The decline was mostly due to write-downs of loans with the underlying amount of credit outstanding remainling relatviely unchanged, the Central Bank said.

The annual rate of decline in lending was minus 0.7 per cent in June, the first annual decreased recorded since the Central Bank began compiling monthly records.