Household Debt Falls to Lowest Level Since 2007

In March, the volume of debt which Spanish households had contracted with financial institutions reached 820,183 million euros, representing a decrease of 4.4% in a year, and putting it at its lowest level since May 2007.

According to provisional data published by the Bank of Spain on Friday, the greater part of these 820,183 million euros, up to 77%, corresponded to debt incurred for the acquisition of housing, which is down 4%, to August 2007 levels.

Spanish household debt has now accumulated four consecutive months of declines, following the increase in November 2012. Compared to the previous month the decline is very small, just 0.4%, and is equivalent to 3,284 million euros.

Cinco Dias reported that corporate debt dropped to a greater extent in March, by 10.6% to 1.12 billion euros, compared to 1.25 billion euros last year and 1.24 billion euros in February this year.

The majority of this amount (710,056 million euros) corresponded to loans, while 73,253 million euros related to debt securities. Foreign loans to non-financial corporations stood at 336,871 million euros, which is 0.4% less than in February and 5% lower than a year earlier.