2023-12-04 04:32:33
The banks have tightened the closure of credit. And it has done so especially to the group of self-employed workers, who are suffering an unprecedented collapse in the balance of their financing due to the greater demands of entities as a result of uncertainty and the abrupt rise in interest rates by the ECB.
The volume of loans from individual entrepreneurs experienced a historic year-on-year decline in October, more than 6%, according to data from the Bank of Spain finished by THE OBJECTIVE. Specifically, the drop is 6.3%, a percentage not seen since records began.. The first data from the supervisory body began in mid-2011, in the midst of the financial crisis.
Precisely, the highest collapse in loans to the self-employed so far occurred then, when in September of that year they fell by 5.5%. Until now, the amount had never been reduced in such a large way.. Not even at the worst moment for Spanish banks, in 2012, when the Government had to ask for a bailout from Europe and their ability to operate was limited.
The decline in self-employed loans is picking up cruising speed
In the last months, the decline in credit activity is deepening, accelerating sharply in the self-employed since the return of summer. In June, the balance of self-employed professionals registered a decrease of 2.7% and in September it exceeded 5%. Hence The trend shows that it is picking up cruising speed.
The rise in rates and, with it, the greater requirements on the part of banks to lend (not only due to the increase in prices) is causing their business to decline considerably. In mortgages and in the business world too. But in these segments the reductions are still more limited.
On the one hand, entities are formalizing fewer new operations and, on the other, Both self-employed workers, companies and individuals are trying to reduce their debts thanks to the savings accumulated in the pandemic with a wave of early repayments of the loans.
The collapse in mortgages It is also increasing, but the percentage is limited to 3.2%. A few months ago the amount granted fell below the threshold of half a billion euros for the first time since 2006.
For its part, in the business world -SMEs and large corporations- does not reach the levels of decline of the self-employed, but reaches 4.9% in October, according to the latest data from the Bank of Spain.
Only family consumer loans are experiencing growthsince the financing granted by the bank registers increases of 3.8% due to the strength of consumption and because the rise in rates on new transactions has not been so verticalwhich demonstrates the commitment of entities to this type of credit despite the risks of non-payment.
Bankers deny that they are turning off the tap and point out that the collapses are occurring due to low customer demand.s. Self-employed workers and companies are not in the mood to go into debt for medium and long-term investments, they point out, due to the costs and the economic and political instability. And households are not buying homes either.
Euribor rise
It must be taken into account that the Euribor is at 4% after the record increase experienced since the war broke out in Ukraine due to the invasion of Russia. 2021 ended in negative territory, so the comeback has been dizzying.
In recent weeks the Euribor has cooled and is expected to gradually decline in the coming months, since The ECB is expected to carry out the first drop in official rates in spring. The market sees that the indicator for loans deadline 2024 seeks 3%as long as there are no extraordinary events that occur.
With this panorama, The bank hopes that little by little the flow of financing will improve and that requests from self-employed workers, companies and families will be restored little by little. The concessions will begin to increase, according to their calculations, starting next summer and, with it, the amounts of their activity.
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