Decline in Annual Business Credit Growth in Belgium for September 2023

According to the latest data from the Observatory of Credit to Non-Financial Companies in Belgium, there has been a deceleration in the year-on-year growth of business credits in September compared to the previous month.

The annual growth rate of credits allocated by resident banks to non-financial corporations stood at 3.2% in September, down from 3.6% in August. Short-term credit growth decreased to 1.3% (from 3.3% the previous month), while medium-term loans (between one and five years) increased to 1.5% (from 1.2% in August). Long-term credits (over five years) showed a growth rate of 4.3%, up from 4.2%.

On a seasonally adjusted basis, the volume of new credits granted in September exceeded repayments by €0.3 billion.

In terms of interest rates, the average interest rate on new business credits rose to 4.63% in September, compared to 4.50% in August. This increase is attributed to rising rates across all credit categories. Notably, the rate on loans with an initial fixation period of over five years increased by 11 basis points to 4.21%. Medium-term loan rates reached 4.91%, up by 12 basis points from August. Short-term borrowing costs for amounts less than one million euros rose by 19 basis points to 5.49%, while loans exceeding this amount increased by 20 basis points, reaching 5.38%.