Fed: Fall in business sector borrowing in Dec: ABS

AAP General News (Australia)
02-14-2006
Fed: Fall in business sector borrowing in Dec: ABS

CANBERRA, Feb 14 AAP - The business sector may be putting the brakes on its borrowing
binge with new figures showing a fall in business lending in December.

The Australian Bureau of Statistics said the total value of commercial finance commitments
for December dropped 2.7 per cent to $31.5 billion. That followed a 16.7 per cent rise
in November.

There was a 10.3 per cent fall in fixed loans from the commercial sector, which more
than offset a 15.4 per cent increase in revolving credit commitments.

The bureau attributed the rise in revolving credit commitments to the finance and insurance
industries, which contributed almost $2 billion of the $3.8 billion increase.

Personal finance commitments rose 1.9 per cent to $6 billion, due to a 4.2 per cent
increase in fixed lending commitments. There was a 0.1 per cent drop in personal revolving
credit commitments.

Lease finance commitments rose 5.6 per cent to $562 million.

The total value of housing finance increased 1.1 per cent to $13 billion.

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KEYWORD: LENDING

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