Lower demand for loans in the euro

The banks of the eurozone found a drop in demand for loans in the first three months of the year, compared with the previous quarter, although its volume was still positive, said today the European Central Bank (ECB). At the ECB's quarterly survey of credit institutes in the euro zone, banks felt encouraged by the volume of loans to enterprises and the private sector, but noted that was lower than the peak reached in the last quarter of 2005.

This drop was particularly noticeable in the demand for mortgage loans, which resulted, according to the survey, some less favorable prospects of real estate markets and the rise of alternative sources of funding.

Written by Carlos Lopez on May 5, 2006 with 1 comment
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