AFP, Frankfurt :
Loans to the private sector in the euro area edged up slightly in July, European Central Bank data showed on Friday, in welcome news for the ailing eurozone.
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 July, approved loans rose 1.3 percent from a year ago, slightly faster than growth of 1.2 in June, an ECB statement said.
When certain strictly financial transactions are stripped out, the growth in loans also increased, with credit accorded to households and companies up 2.0 percent in July after a rise of 1.9 percent in June.
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.
