Private sector loans growing in eurozone: ECB
FRANKFURT: The volume of loans to the private sector in the euro area expanded in November, with a bigger bounce recorded than the previous month, European Central Bank data showed on Wednesday.
The statistics are a key indicator of economic health for the ECB, as borrowing is a main financing source for corporate investment which in turn should boost the eurozone’s currently weak economy.
In November, approved loans rose 1.3 percent from a year ago, compared to a growth of 1.0 percent in October, an ECB statement said.
When certain strictly financial transactions are stripped out from the loans data, the trend remained the same — with credit accorded to households and companies up 1.0 percent in November, compared with 0.8 percent in October.
The ECB has launched a raft of policy measures to get credit flowing, most significantly a massive programme to buy more than one trillion euros ($1.1 trillion) worth of public sector bonds to pump liquidity into the system.