AFP, Frankfurt :
Growth of loans to the private sector in the euro area picked up slightly in April, European Central Bank data showed on Tuesday.
For the ECB, the statistics are a key indicator of the economic health of the single currency area, as borrowing is a main financing source for corporate investment which in turn should boost the eurozone’s currently weak economy.
In April, approved loans rose 1.1 percent from a year ago, slightly faster than growth of 1.0 percent in March, an ECB statement said. When certain strictly financial transactions are stripped out, the growth in loans stagnated, with credit accorded to households and companies up 0.9 percent in April, unchanged from March.
The ECB has launched a raft of policy measures to get credit flowing, most significantly a massive programme to buy public sector bonds to pump liquidity into the system.
The ECB recently beefed up that programme and also launched a new scheme of ultra-cheap loans to banks on condition they lend them on to households and businesses.
Growth in the overall money supply, known as M3, stood at 4.6 percent in April, slower than the 5.0 percent recorded in March, the ECB also said Tuesday.
The ECB regards M3 money supply as a barometer for future inflation.
