Bloomberg News

Irish Private-Sector Credit Declined in July on Writedowns

August 31, 2009

Irish lending fell for a second month in July after banks and other financial institutions wrote down the value of loans, the central bank said.

Private-sector credit declined 2.2 percent in July from a year earlier the Dublin-based central bank said in a statement today. Lending fell 0.7 percent in June.

“The effect of increased writedowns and provisions against bad and doubtful debts, reflecting weaknesses in the broader economy, have led to the” decline, the central bank said.

Ireland’s banks face loan losses of about 35 billion euros ($50 billion) after the bursting of the country’s property bubble, the International Monetary Fund said in June. Demand for loans from businesses and consumers declined as the economy shrank and they scaled back their spending.

Mortgage lending fell by 71 million euros in July, the fourth consecutive monthly decline, the central bank said.

To contact the reporter on this story: Ian Guider in Dublin at iguider@bloomberg.net.

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Edward Evans at eevans3@bloomberg.net.


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus