Borrowing levels in relation to debt repayments experienced their highest level of annual growth in more than seven years in the three months to July, according to latest Central Bank data.
Irish households drew down €98m more in new loans for consumer purposes than was repaid during the period – the highest annual growth since February 2009.
However, new lending was greater than repayments only in the medium-term loan category, while repayments by short- and long-term borrowers continued to outpace new lending activity.
Medium-term consumer loans typically include loans for cars, furniture and holidays.
Meanwhile, the Central Bank figures also show the value of mortgage loans, which account for 83% of on-balance sheet household loans, fell by €103m in July.
Annually, mortgage loans declined at a rate of 1.9%, with households repaying€1.5 billion more than was advanced in new loans.
Deposits from households increased by €559m in July, with households being net funders of the Irish banking system for the thirteenth consecutive month.
Banks now hold €7.4 billion more household deposits than loans, whereas in early-2009 household loans exceeded deposits by €53.5 billion.
