In the private sector of Ireland credit cards growth seems to be slowing down. It is at its weakest level in four years. The mortgage growth has hit a 14 year low as well. Overall in Ireland the entire credit sector has seen a slowdown. In fact the annual rate of increase has slowed to 15.6 percent in the last month, where it was 16.6 percent in January. One of the weakest spots for the credit growth is in the Central Bank of Ireland according to data that they released on Monday.
The peak was below 30.3 percent which is what the growth rate was in June of 2006. The property market also grew substantially with high rates, but in recent months it has slowed way down. The credit sector for Euros rose though.
There was a growth of 914 million Euros or 1.44 billion last month. This was an increase of .2 percent last month. So there is an outstanding level of credit at 379.1 billion. This is the first time an increase of less than a billion Euros was made since 2004.
Part of the effects actually rose from an early repayment of a large loan according to the Central Bank of Ireland. The residential mortgage lending has also decreased to 12.3 percent from 12.9 percent. It seems that Ireland’s decade long growth in the property boom has come to an end. The housing prices that once quadrupled has stopped growing and there has been a loss of job growth as well.
It seems that there has been a decrease in credit cards to 8.2 percent of debt. According to the bank payments that have been received are exceeding the spending that has occurred in the last two months. This means that credit card debt is down by 2.9 billion Euros just in February. Most of the decrease is being associated with long term refinancing though. It seems that there has been a decrease of 2.4 billion Euros just in February related to refinancing for long term. Credit institutions in Ireland are also seeing a decrease in other accounts.
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