Demand for long-term loans by small- and medium-sized enterprises are expected to rise in the first quarter of 2024, the Bank of Greece said.
More specifically, the central bank said that credit standards for loans to non-financial corporations (NFCs) remained unchanged in the fourth quarter of 2023 as well as the terms and conditions for corporate loans. Moreover, the overall demand for corporate loans remained unchanged.
Credit standards and the terms and conditions for loans to households remained stable in the fourth quarter of 2023. The demand for housing loans decreased, while the demand for consumer credit remained at the same levels.
In the fourth quarter of 2023, the credit standards for loans to non-financial corporations (NFCs) remained unchanged compared with the third quarter of 2023, in line with the expectations expressed in the previous quarterly survey round. Moreover, banks expect credit standards to remain at the same levels during the first quarter of 2024.
During the fourth quarter of 2023, the overall demand for corporate loans did not change. During the next quarter, the overall demand for loans is expected to remain almost unchanged, although the demand for long-term loans by small and medium-sized enterprises is expected to increase somewhat. In the fourth quarter of 2023, the ratio of rejected applications for loans to NFCs remained unchanged compared with the previous quarter.
Demand for housing loans fell, because of the general level of interest rates and the termination of state-subsidized housing programs. During the next quarter, the overall demand for housing and consumer loans is expected to remain almost at the same levels. Banks expect that credit standards for housing and consumer loans will remain unchanged during the first quarter of 2024.
