The debt of Spanish families fell by 5.2% in October to reach 793,940 million euros, while that of companies fell by 10%, to 1,081 billion, in both cases the lowest levels since the first quarter of 2007.
The macroeconomic environment and the euro crisis have not helped to open the credit tap According to the data published this Monday by the Bank of Spain , the indebtedness of families and companies with financial institutions has been maintained for several months at its lowest level for more than five years, shows that the credit does not flow .
The October data confirm for the fourth consecutive month the contraction of the families’ debt, after growing in June for the first time in six months, due to the rebound in consumer loans.
On this occasion, the credits for these purposes other than the purchase of housing have fallen by 7.2%, to 176,021 million euros, while for the purchase of housing, the decline has been 4.7%, to 614,422 million.
With regard to the debt of the so-called non-financial corporations, the 10% reduction is mainly due to the fall of the securitized and off-balance-sheet loans, which represent 61% of the total and which were reduced by 15% since the previous year.
The credit tap is still closed
The deleveraging process (reduction of its credit-granting) in which the banks are located directly affects their ability to grant new financing to families and businesses, as published 20minutes. The macroeconomic environment and the euro crisis have also not helped to turn on the tap.
The tensions in the sovereign debt markets registered in the wake of the euro crisis and the regulations approved both by the international authorities (new Basel III regulations) and by the Government to strengthen the capitalization of banks (the so-called “decrees”) II) “together they limited and increased the supply of credit throughout the year, ” as a report from the Spanish Mortgage Association (AHE) concludes.
The bank has received public and private aid of more than 159,000, but the loan remains untouched Community authorities noted in their report after the assessment mission to the Spanish financial rescue that “the credit crunch will hit bottom in 2014 and from there will increase slightly until the end of 2015, with the exception of SMEs. ”
In recent years, Spanish banks have received aid from the public sector and the private sector for a value of over 159,000 million euros, including 41,300 euros for the European rescue. The official figures of the Bank of Spain speak of 61,366 million euros, but they forget some items and other private aid received by the bank.
The entities have obtained more than 50,000 million transferring their toxic assets to the ‘bad bank’, they have more than 40,000 million in projected losses and the losses imposed on the preferential have contributed another 13,600 million in an indirect way to heal themselves. Brussels considers that 87% of the capital that has been delivered to the bank will be losses.
Despite public and private aid, financial institutions continue to deny 70% of loans and mortgage loans are still in free fall. Entrepreneurs, the government, international organizations, businessmen, and families continue to point to banks and saying that credit has to start flowing out of the crisis.
And, for the moment, there is no sign that this situation is going to improve quickly. The banks are still not completely healthy and the Bank of Spain has indicated that the entities will have to continue provisioning the assets of the real estate sector to cover risks over the next year.