Borrowing rises 15pc

20 April 2004

MADRID – Each person in Spain borrowed an average of EUR 18,653 last year, according to figures released by the Bank of Spain Tuesday.

The total amount borrowed from banks, savings banks and other financial institutions in 2003 by families and companies was EUR 761 billion

Bank analysts said that Spaniards had borrowed more than EUR 100 billion more last year than in 2002, when the entire debt was EUR 662 billion.

The Bank of Spain results show people borrowed 15 percent more for their homes of businesses in 2003.

Analysts said this was primarily due to low rates of interest. 

Banks had the biggest level of credits at EUR 363 billion, with savings banks put at EUR 356 billion and cooperatives at EUR 41 billion.

Madrid is the place with the highest level of borrowing.

Figures showed people in the capital had borrowed EUR 177 billion – or an average of EUR 32,629 per person.

This was followed by those in Barcelona with EUR 122 billion – or EUR 25,338 per person.

This was mainly because the biggest companies were based in Spain’s two main cities, analysts said.

[Copyright EFE with Expatica]

Subject: Spanish news