The latest report from the Observatory of Credit to Non-Financial Companies reveals a marginal decline in the year-on-year growth of credits to businesses in August, compared to the previous month. The annual growth rate of credits granted by resident banks to non-financial companies stood at 3.6%, a slight dip from 3.7% in July.
Breaking down the data, the growth rate of short-term credits decreased to 3.4% (from 4.2% the previous month). Medium-term loans (between one and five years) registered a rate of 1.1% (compared to 1.3%), while long-term credits (over five years) settled at 4.2% (up from 4.1% in June). Seasonally adjusted data indicates that the volume of new credits issued in August exceeded repayments by 0.2 billion euros.
In terms of interest rates, the average for new credits to businesses increased in August, reaching 4.50% (compared to 4.47% in July). This rise was attributed to increased rates across all credit categories, except for medium-term loans. Rates for loans with an initial fixation period over five years gained 2 basis points, settling at 4.10%. Medium-term loan rates (initial fixation period between one and five years) stood at 4.79%, a decrease of 13 basis points from July. Additionally, the cost of short-term loans under one million euros rose by 15 basis points to 5.30%, while loans exceeding this amount increased by 10 basis points, reaching 5.18%.
The Observatory’s report provides valuable insights into the credit landscape for businesses in Belgium, highlighting nuanced changes in growth rates and interest costs for various credit types.