Spanish household financial debt similar levels to 2007

Household financial debt amounted to 798.045 million euros at the end of last September, an amount similar to that recorded in February 2007, according to data from the Bank of Spain, which is the measurement process of deleveraging ( debt reduction ) of households and firms.

This balance represents a decrease of 0.58 % from the previous month ( the household debt in August stood at 802.707 million ) and 5.08% in September 2012, when accumulated payment commitments amounted to 840.759 million. That is, no new loans are granted or the volume is less than the outstanding payments.

The balance of the mortgage debts of households and non-profit institutions serving households (NPISHs ) stood at 618.579 million euros , a level not seen since May 2007.

Family Debt levels are similar to 2007
Family debt levels are similar to 2007

The amount of mortgage loans representing a decrease of 0.36 % compared to August ( 620.795.000 million ) and 4.54 % over September last year ( 648.026.000 million ).

The outstanding September consumer credit reached 176.413 million euros , a figure not seen since March 2006. Lowering the amount of consumer loans by 1.38% over last August ( 178,880 million) and 7.11% compared to September 2012 ( 189.911.000 ) .

The corporate debt fell by 10.98 % year on year. The corporate debt also fell in September from the previous month , slightly less than 3,000 million euros , or 0.27 %, to 1.08 million.

In the last twelve months, between last September and December of 2012 – the reduction in the amount of credit made available to Spanish companies fell by 133.249 million euros, 10.98% . Both domestic loans and the financing obtained from abroad by companies fell when compared monthly and year on year.

Thus, loans to entities, resident non-financial corporations stood at 670.596 million last September, a figure that implies a fall of 0.35% over August ( 672 976 000 ) and 15.37 % over September 2012 ( 792,423,000,000 ).

Businesses enjoyed a foreign credit balance of 328.344 million at the end of September, 0.26% less than in August ( 329,200 million) and 5.54 % lower than in September 2012 ( 347 619 million ).

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