Household Debt Falls to Lowest Level Since Start of Crisis
May 8th, 2012
The accumulated debt of Spanish households amounted to 859,538 million euros in March, representing a reduction of 3.19% over the same month of 2011 and the lowest level since the beginning of the crisis. According to provisional Bank of Spain data released on Monday, outstanding household debt reduced by 0.24% in March over February, and marked four consecutive months of decline.
The debt accumulated by Spanish families for acquiring a home rose in March to 659,870 million euros, representing 2.2% less than the same month of 2011, and 0.17% less than in February. In the month of March the cumulative lending for house purchases accounted for 76.77% of total household debt.
With respect to non-financial corporations, the debt rose in March to 1.255 billion euros, or 2.56% less than in the same month last year. Diario Sur reported that the decline in corporate debt was mainly due to a decrease in the off-balance sheet securitised loans, which in one year have gone down from 880,835 million euros to 829,881 million euros.
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