Credit to families and non-profit groups in Spain by financial institutions rose by 0.8% in March from a year earlier, totaling 699,273 million euros. Financing to businesses grew by 0.3% to 934,853 million euros, according to data released this Tuesday by the Bank of Spain.
This period shows an increase in loans to households of 5,836 million euros and to companies of 2,407 million euros over the previous twelve months, all set against a backdrop of the Ukrainian conflict’s impact on the Spanish economy and rising prices.
On a monthly basis, household debt in March edged up slightly by 1,512 million euros from February, a 0.2% rise. Corporate debt, in contrast, fell by 974 million euros in March, down 0.1% from February.
Increase in sales
Housing loans, which constitute the majority of total debt, reached 515,848 million euros in March, up 1.082 million euros from the prior month and 6,140 million euros higher than a year earlier, in line with the uptick in home sales in recent months.
These figures show that households continue to allocate most of their indebtedness toward home purchases, accounting for about 73.7% of total household debt.
Meanwhile, family loans for consumption fell 0.6% month over month to 92,062 million euros, while the allowance for other consumer expenditures rose by 0.7%.
Additionally, loans for other purposes stood at 88,469 million euros, down 0.2% from 88,626 million the previous month. The year-over-year rate eased by 1.4%.
Notional debt values
For their part, business financing in March reflected growth in debt securities and loans sourced abroad, offsetting a decline in bank loans to financial institutions over the past year. Notably, corporate bank credit totaled 478,376 million euros in March, down 2.02% year over year. Debt securities rose 8.8% year over year to 142,218 million. Loans from abroad increased by 0.2% year over year to 314,258 million.
These movements illustrate a shift in funding structures, with businesses diversifying sources while households continue to lean heavily on mortgage-related borrowing amid a gradually improving housing market.