Slovak News Back to the news
Drop in Credit to Businesses Seen as Disconcerting for Hopes of Revival
Wednesday 03 March 2010 Zoom in | Print page
Bratislava, March 3 (TASR) - The month-on-month drop in the volume of new loans provided to entrepreneurs in January is a disconcerting signal vis-a-vis the expected revival of the Slovak economy, Finance Ministry State Secretary Peter Kazimir said following a Government session on Wednesday.
"We believe that developments in the area of credit are satisfactory at the moment, particularly when it comes to access to loans and credit for the general public. However, some disconcerting signs are appearing with respect to provision of loans to the entrepreneurial sector. This may well indicate some trouble as regards the revival of the economy," said Kazimir in reference to a report on credit provision in Slovakia that governor of Slovakia's central bank NBS Jozef Makuch presented at the Cabinet session.
The latest report on credit provision in Slovakia revealed that the amount of new loans to the business sector fell month-on-month by 2.4 percent to €675 million, whereas in the last three months of 2009 it was on the rise.
On the other hand, the figure was up 41.3 percent in annual terms. "Given the slump in January 2009, this figure may not necessarily mean a significant turn for the better," reads NBS's report.
When it comes to new loans for the general public, the figure dropped month-on-month by 12.9 percent to €260 million. In an annual comparison, however, developments were similar to those seen in credit provision to businesses. The figure rose by 76.7 percent compared to January 2009.
Meanwhile, the ministry yet again chastised Slovak banks for what it views as too large a difference between interest on loans and those pertaining to deposits in banks' portfolios. Although the banking sector has responded to the ministry's urgings, the ministry will continue to address this issue.
According to Kazimir, the ministry will set up its own analytical team that will use data not only from NBS – since, as he says, the ministry and NBS differ in their ideas of consumer protection.
All rights reserved. Any publishing or further dissemination of press releases and photographs from TASR's resources without TASR's prior written approval constitutes a violation of the Copyrights Act.
