Irish consumer debt rises to record €282.8 billion

The credit boom is showing no signs of slowing down, according to the latest figures that showed credit in Ireland grew by 29…

The credit boom is showing no signs of slowing down, according to the latest figures that showed credit in Ireland grew by 29.8 per cent in May.

The annual rate of private sector credit is the highest growth rate on record since March 2000 and surpassed the previous peak of 29.6 per cent set last month.

The figures compiled by the Financial Regulator shows that credit growth expanded by €6.6 billion, the highest monthly increase in 12 months, bringing total outstanding private sector credit to €282.8 billion.

For the first time since December 2005, non-mortgage credit increased at a faster adjusted annual rate than mortgage credit, rising by 29.7 per cent in May, compared to 29.4 per cent in April.

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This is the fastest growth in non-mortgage credit in six months, with term/revolving loans increasing by €2.2 billion, well above the average monthly change seen in early 2006, the regulator said.

Some €2.1 million in new mortgages was underwritten in May, up from €1.8 billion in April.