Figures from the Central Bank show that the amount of money being lent in the economy fell again in July.
The bank said net mortgage lending dropped by €71m in July, the fourth monthly fall in a row. This means that the amount repaid on existing mortgages was greater than the amount of new mortgage lending. The annual rate of growth in mortgage lending fell to 1.2% from 1.9% in June.
Total lending in the economy fell by €3.7 billion in July, the fifth monthly fall in a row, mainly due to the write-downs of loans and increased provisions for bad debts. When these were excluded, lending fell marginally compared with June. The annual fall in private sector credit was 2.2% in July.
The Central Bank also said that the amount owed by households fell €404m in July, with repayments on credit cards again exceeding new spending.
