Belgium’s Business Credit Growth Stabilizes in June 2023, Short-Term Credits Rebound

Belgium’s business credit growth remained stable in June 2023, compared to the previous month. The year-on-year variation rate of credits allocated by resident banks to non-financial companies held steady at 4.1%, slightly lower than May’s 4.2%. Short-term credit growth rebounded to 5.3% (up from 3.9% the previous month). Medium-term loans (between one and five years) increased to 2.6% (from 1.7%), while long-term credit (over five years) settled at 4.0% (down from 4.8% in May). When seasonally adjusted, new credits granted in June exceeded repayments by 0.4 billion euros.

The average interest rates on new business credits rose in June to 4.37% (compared to 4.07% in May), influenced by rate increases across all credit categories. Rates on loans with initial fixed terms exceeding five years increased by 7 basis points to 3.99%. Loans with medium-term fixed rates (between one and five years) reached 4.67%, a rise of 118 basis points from May. The cost of short-term loans below one million euros climbed by 35 basis points from the previous month, reaching 5.07%, while loans exceeding this amount saw a 36 basis point increase, reaching 5.03%.