Private sector deposits showed a significant decrease of EUR 5.2 billion in January, as did lending, as the annual rate of change of total private sector financing fell to 3.0% and the monthly net flow of total financing to the private sector was negative by 2.734 billion euros.
In more detail, in terms of deposits, Bank of Greece data show that business deposits decreased by 3.1 billion euros and deposits from households and private non-profit institutions by 2.07 billion euros.
It is noted that business deposits in the previous month (December) had increased by 3.2 billion euros, while the annual rate of change remained unchanged at 1.6% compared to the previous month. In particular, the deposits of Non-Financial Enterprises decreased by 3,382 billion euros, against an increase of 2,650 billion euros in the previous month. Deposits of insurance companies and other financial institutions increased by 214 million euros, compared to an increase of 642 million euros in the previous month.
Deposits from households in December had registered an increase of 3.083 billion euros, while the annual rate of change decreased to 3.1% from 3.5% in the previous month.
On the contrary, general government deposits showed an increase of 1.536 billion euros in January 2024, against a decrease of 1.060 billion euros the previous month and the annual rate of change increased to 2.9% from -14.6% the previous month.
Loan reduction
On the lending side, the monthly net flow of funding to businesses in January 2024 was a negative €2.506 billion, compared to a positive net flow of €3.801 billion in the previous month, and the annual rate of change decreased to 6.0% from 6.9% in the previous month.
In particular, the annual rate of change in financing of non-financial corporations (NFCs) decreased to 5.0% from 5.8% in the previous month. Their monthly net funding flow was a negative €2.008 billion, compared to a positive net flow of €2.860 billion the previous month. The annual rate of change in the funding of insurance companies and other financial institutions fell to 14.3% from 15.9% in the previous month. Their monthly net funding flow was negative by €498m, compared to a positive net flow of €940m the previous month.
The monthly net flow of funding to freelancers, farmers and sole proprietorships was negative by €79m, compared to a positive net flow of €94m the previous month. The annual rate of change in their funding was -1.1% from -1.3% in the previous month.
Finally, the monthly net flow of funding to individuals and private non-profit institutions was negative by €150 million in January 2024, compared to a negative net flow of €2 million in the previous month. The annual rate of change in their funding was -1.9% from -2.0% in the previous month.
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