Private sector credit growth rose by its fastest rate in six years in April as house-buyers borrowed €1.8 billion for residential mortgages, the Central Bank revealed today.
The Bank said that more than €106.4 billion is now owed by mortgage holders. If this rate of borrowing is sustained, at 27.7 per cent in the year, the Bank says the amount owed will double in three years.
According to the Bank non-mortgage credit growth rose at a slower rate last month. The annual increase in credit card debt rose to 17.3 per cent in April, up on the average 15.5 per cent growth during the 12 months to March 2006.
The Bank noted that this was the result of a larger than usual rise in indebtedness following a fall in payments received during the month.