Record collapse for i Loans to the private sector in April. The contraction on an annual basis was 2,3%, after -1,7% in March. It was mainly companies who paid the price: loans to non-financial companies decreased, again on an annual basis, by 3,7% (2,8% in March). The contraction in loans to households was much milder, down by 0,8% over twelve months. The Bank of Italy communicated it today, thus confirming it the alarm raised two days ago by Christine Lagardenumber one of the IMF.
I interest rates on loans to households for house purchases amounted to 3,95% (3,9% in March), while those on new consumer credit disbursements decreased to 9,48% (from 9,64%) . Yields on new loans to non-financial companies for amounts below one million euro were 4,39% (4,36% in the previous month), those on new loans for amounts exceeding this threshold grew by 3,12% (2,93% in March). Deposit rates on all outstanding deposits remained substantially stable at 1,14% (1,16% in March).
As for bank bad debts, grew by 22,3% in April (21,7% in March). THE deposits of the private sector instead increased by 7,1% (7% in March). The twelve-month growth rate of bond funding, including bonds held by the banking system, was equal to -3% (-3,3% in the previous month).
