Belgian banks lend record amounts to business

Belgian banks are lending record amounts to businesses, according to figures from the industry federation, Febelfin. At the end of May, the outstanding credit to industry stood at a record €120 billion.
 
That figure is €6 billion higher than the same time the previous year, and €4.5 billion higher than at the end of December 2015. From the end of April to the end of May, businesses took out loans worth €1 billion.

Low interest rates played a major role, Febelfin explains. Businesses are now more interested than ever in longer-term loans, of between one and five years. “Companies that can present a solid credit file have every chance of seeing their application for credit approved,” said Febelfin director Michel Vermaerke (pictured).

“The rate of acceptance is around 83%, which puts Belgium ahead of the field. Another major factor is that Belgian banks are sitting on enormous reserves of cash thanks to the traditional Belgian savings habits.”

Household credit is also on the rise. At the end of May, the amount outstanding stood at just under €203 billion, an increase of €2.8 billion in the first five months of the year.

Photo courtesy Febelfin