For the first time in two years, the eurozone has seen growth in demand for mortgage and consumer loans. This is due to falling property prices and lower borrowing costs. This was reported by the Financial Times, EP reports.
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The ECB said that the change in the situation on the housing market, especially in Germany, was the main factor in the recovery in demand.
Last year, housing prices in Germany fell by 8.4%, which is one of the biggest falls in the eurozone, where prices on average fell by 1.1% compared to the previous year.
The publication emphasizes that the revival of demand for loans supports the recovery of the eurozone economy, but the increase in borrowing volumes may also contribute to the preservation of high inflation, which exacerbates the caution of politicians in reducing interest rates.
Demand for loans from businesses continues to fall for the seventh quarter in a row due to a decrease in investment activity and an increase in rates on corporate loans.
In the second quarter, banks somewhat eased lending conditions for households, while tightening them for businesses, especially for loans for commercial real estate.
- Europe Loans