Demand for business loans increased in the second quarter of the year, while mortgage lending fell, according to a bank lending survey conducted by the Bank of Greece, which found a reversal of the positive trend recorded in the first quarter for housing loans.
The trend in corporate financing remains on the rise, even after the deterioration in economic conditions as the rising cost of energy creates additional financial needs for companies with higher operating costs.
The demand for mortgage loans was in negative territory, according to the methodology followed by the BoG, which observes that “the factors which affected the reduction in demand for mortgage loans were on the one hand the level of interest rates and on the other hand the deterioration of interest rates”. consumer confidence.” The finding reflects concern over rising lending rates given the European Central Bank’s interest rate hike.
At the same time, the demand for business loans recorded an increase for both small and medium-sized enterprises and large enterprises. “Factors that influenced the increase in demand were fixed investment financing and the expansion of working capital,” BoG noted.