Credit to private sector continues to fall in Spain


According to data from the Bank of Spain, credit granted by financial institutions to households and non-profit institutions resident in Spain fell by 1.8% in April 2024 compared to the same month in 2023, to €678,762 million, while financing to companies fell by 0.4%, to €928,705 million, according to data published on Monday by the Bank of Spain.

Mortgage loans to households, which account for most of their total debt, stood at €494,265 million in April 2024, which is €12,104 million less than a year earlier, a fall of 2.4%. And that provided to companies fell by €3,459 million, all in a context now marked by geopolitical tensions, price rises and higher interest rates.

Specifically, bank loans to companies stood at €456.503 billion in April, down 3.4% compared with the same month in 2023, while debt securities fell 0.4% to €130.598 billion and foreign loans rose 4% year-on-year to €341.604 billion.

What is growing is household credit for consumption: it grew by 4.6% year-on-year in April 2024 to over €100 billion (100.03 billion), while household loans for other purposes reached €81.025 billion, down from €85.8 billion a year earlier.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.