French lending to private sector tightens in November: data

29th December 2011, Comments 0 comments

French banks cut back lending to households and non-financial companies in November, data from the Bank of France showed on Thursday, amid fears of a possible credit crunch in the eurozone.

The volume of outstanding loans by French banks to the non-financial sector dipped by 0.04 percent in November from the previous month to 1.9153 trillion euros.

On an annual comparison lending was still up by 5.8 percent, but lower than a 6.5 percent increase in October.

While the French central bank's monthly survey of bank lending officers did not reveal a tightening of lending conditions to non-financial businesses, the volume of outstanding loans dipped 0.4 percent to 817.1 billion euros from 820.4 billion in October.

The central bank's survey had found that the country's banks have tightened their mortgage lending conditions, but outstanding mortgage loans continued to increase in November.

However the annual increase in mortgage lending slipped to 7.8 percent from 8.3 percent in October.

Last week the European Central Bank lent banks an unprecedented 489.2 billion euros to 532 banks in the longest-ever refinancing operation in a move to avert a possible credit crunch.

© 2011 AFP

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