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Family debt was reduced by 1.7 billion in April

The debt of the families fell 0.25% in March , to 702.010 million dollars. What is 1,700 million dollars less than the previous month, which remains at its lowest level since 2006. These are data published by the GoodPocket Bank. On a year-on-year basis, the indebtedness of Spanish households fell by 1% compared to April 2017, with a decrease of 6,849 million dollars.

In this way, the indebtedness of the families falls slightly after having started the year 2018 with a decrease of 0.4% in January that moderated in February (-0.2%), and after the rise of 0.3% of March.

The debt of Spanish households has been declining to pre-crisis levels due to the gradual reduction of loans contracted, the drop in interest rates and the lowering of loans.


The slight decrease in the debt of the families

family debt

In the fourth month of the year is mainly due to the decrease in consumer loans, which stood at 176,347 million dollars in April, which decreased 1% on a monthly basis, but rose 3.7% year-on-year.

On the contrary, loans for housing remained practically unchanged at 176,347 (-0.01%) and fell 2.5% compared to April 2017.

In spite of the decrease of the investment of the homes in housing during the last years, the amount that the families allocate to their home continues occupying most of their indebtedness, since it supposes around 74.9% of the same.

Likewise, off-balance-sheet loans and other loans totaled 6,337 million dollars in the fourth month of the year, 3.3% less than in March and 21% lower than the figure registered a year earlier.


Lower corporate debt

Lower corporate debt

On their side, companies also reduced their debt in April . Specifically, the companies’ debt stood at 881.050 million dollars, which represents a 0.2% decrease compared to March and 3.8% compared to the same month last year.

The slight contraction of corporate debt in April is mainly explained by the decrease in loans from resident credit institutions and foreign loans.

The former fell 0.5% in relation to the previous month and 6% in the interannual rate, to 497,961 million dollars; while foreign loans fell 0.02% monthly and 2.2% year-on-year, reaching 284,932 million dollars. Finally, securities other than shares advanced 0.8% compared to March, increasing to 98,156 million, 2.7% higher than in April 2017.


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