Private sector loans decline

Tim Wallace
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BANK lending to businesses fell again in the Eurozone in October, according to data published yesterday by the European Central Bank (ECB).

Despite market sentiment improving on the back of the ECB’s plans to buy the bonds of struggling governments like Spain’s, loans to the firms fell 1.8 per cent, accelerating from the 1.5 per cent drop seen in September.

But lending to households edged up 0.5 per cent, with mortgage lending up 1.3 per cent in the year.

Private sector lending overall fell 0.7 per cent.