Demand for business loans increased in the year’s second quarter, while mortgages slid, according to a bank lending survey conducted by the Bank of Greece, which found a reversing of the positive trend recorded in the first quarter for housing loans.
The trend for business financing remains upward, even after the deterioration of economic conditions as the energy cost rise creates additional financial needs for businesses with bigger operating costs.
Demand for housing loans was in negative territory, based on the methodology followed by the BoG, which observes that “the factors that affected the reduction in demand for housing loans were on the one hand the level of interest rates and on the other the deterioration of consumer confidence.” The finding reflects the concern about the increase in rise lending rates in view of the interest rate hike by the European Central Bank.
At the same time, demand for business loans recorded an increase for both small and medium-sized and large enterprises. “The factors that influenced the increase in demand were the financing of fixed investments and the expansion of working capital,” BoG noted.