Spanish Household Debt Falls to Pre-Crisis Levels
September 4th, 2013
The financial debt of Spanish households stood at 807,446 million euros in July, representing a fall of 4.7% compared to the same month of 2012 (847,405 million). This figures puts household debt in Spain at its lowest level since March 2007, before the crisis.
According to data published by the Bank of Spain, compared with the previous month the fall is 0.8%, bringing the credit back down after the monthly rise in June.
Year-on-year the household debt was particularly affected by the decline in the volume of mortgage loans during the seventh month of the year, which fell by 4.7%, to reach 621,157 million euros. Thus, loans for house purchases represented more than three quarters of the total Spanish household debt.
Meanwhile, El Mundo reported that the consumer credit debt fell by 4.9% year-on-year and stood at 183,237 million euros. This ratio has been maintained for several years, since the fall in housing investment has paralleled that of the total debt, so that the amount that families spend on their household accounts for most of their savings.
Loans to non-financial corporations in July fell by 11.2% year-on-year, and totalled 1.082 billion euros, the lowest level since April 2007, while in relation to June this year they showed a decline of 0.84%.
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