The Bank of Spain has reported that the credit granted by financial entities to resident families and non-profit institutions decreased by 0.2% in February compared to the previous month, to 692,635 million euros, its lowest level since April 2006, while financing to companies rose to 948,616 million euros.
In recent months, the debt of Spanish households has been stabilizing and has even been falling in general despite the Covid crisis, reaching levels prior to the financial crisis of 2008, due to the gradual reduction of the loans contracted , to the fall of the interest rates and to the lowering of the credits.
Thus, household indebtedness fell 0.18% in January on a monthly basis, to 692,635 million euros, its lowest level since April 2006, and fell 1.4% year-on-year.
As a sign of the fall in debt, it should be remembered that the end of the 2020 financial year, marked by the coronavirus crisis, marked its lowest level since 2005.
Meanwhile, corporate debt rose to 948,616 million euros, 0.3% more than the previous month and 6.4% higher year-on-year.
This figure reflects the impact of the liquidity measures approved by the Executive to alleviate the Covid-19 crisis, such as endorsements with guarantees from the ICO.
The monthly and year-on-year drop in household debt was due both to the decline in mortgage loans and to the drop in consumer loans.
Thus, mortgage loans, which represent the majority of the total, stood at 511,421 million euros in February, which represents a slight decrease compared to the previous month, when it reached 511,441 million euros, and a year-on-year fall of 1, one%.
Despite the decline in household investment in housing in recent years and in financial year 2020, the amount that families spend on their home continues to occupy most of their debt, since it represents around 73.8% of the same.
On the other hand, household loans for consumption also experienced a year-on-year decrease in February of 2.3%, to 181,214 million euros, and a monthly drop of 0.6%.
On the other hand, financing to companies in the second month of the year rose by 6.4% year-on-year, to 948,616 million euros, mainly due to the increase in loans from credit institutions due to the measures approved by the government against the crisis, as well as debt securities and foreign loans.
Specifically, bank loans with companies increased 7.8% year-on-year, to 503,813 million euros. On a monthly level, they were down 0.04%.
– .
