In October, bank loans to residents of Malta contracted by €74.8 million (-0.7 per cent) on the previous month. Year-on-year, however, credit expanded by €0.2 billion (1.8 per cent), according to the Central Bank of Malta.
Over the month, credit to general government fell €62.2 million (-2.3 per cent) as an increase in the banks’ Treasury bill holdings was offset by a fall in their Malta Government Stock portfolio in line with the redemption of two MGS issues.
In annual terms, credit to general government rose by 9.8 per cent.
Meanwhile, credit to other sectors, mainly comprising households and private sector entities, contracted by €12.6 million (-0.1 per cent) during October.
While loans granted to households, primarily for house purchases, increased, loans granted to companies – mostly those operating in the manufacturing, transportation and storage and construction sectors – declined.
On an annual basis, credit to the other sectors contracted by 0.4 per cent.