Tuesday 30 June 2009

DATA SNAP:Irish May Pvt Sector Credit Growth 0.8%;Record Low

DATA SNAP:Irish May Pvt Sector Credit Growth 0.8%;Record Low

By Quentin Fottrell

DUBLIN (Dow Jones)--Irish annual private-sector credit growth, adjusted for the exchange rate, was 0.8%, the lowest since the series began in 1990, compared with a revised 1.6% in April and 15.1% a year earlier, the Central Bank of Ireland said Tuesday.

The growth in private-sector credit fell by EUR1 billion in May after April's EUR1.8 billion decline, due to the decline in residential mortgage lending as a result of the property crash.

Residential mortgage lending fell over EUR18 million in May - the second time it fell since the monthly private-sector credit series began. The annual growth rate was 2.6% in May, a historic low, compared with growth of 3.3% in April.

Payments on credit cards have exceeded new spending every month in 2009, leading to the annual rate of increase in outstanding indebtedness on credit cards to slow to 0.1% in May from 0.8% in April and 11.9% in April 2008.

Total lending by credit institutions in Ireland to non-government Irish residents decreased by EUR981 million in May to EUR389.6 billion, with a EUR864 million decrease in non-euro lending.

Financial institutions in Ireland accounted for EUR199.8 billion of the euro zone's broad money supply, or M3, in May, a monthly decrease of EUR6.8 billion, or a fall of 3.3%, the Central Bank of Ireland added.

-By Quentin Fottrell, Dow Jones Newswires; +353-1-676-2189; quentin.fottrell@dowjones.com

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(END) Dow Jones Newswires

June 30, 2009 06:00 ET (10:00 GMT)

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