The value of loans in the financial system hit R$ 3,700 billion in February (a decline of 0.1% during the month and a decline of -3.5% in the 12-month measure, according to Central Bank data released today. Loans to companies dropped 0.3% to R$ 1,504 billion while lending to households was stable at R$ 1,567 billion. The debt to GDP ratio declined by 0.2 percentage points to 48.7%, compared to 52.7% in February 2016.
Non-earmarked credit totalled R$ 1,530 billion (a decline of 0.2% in the month and 4.6% in 12 months). For individuals the stock decreased by 0.5% during the month, falling to R$ 805 billion, mainly due to the taking away of overdrafts and credit cards, and the growth in payroll-deductible loans. For companies, there was an increase in credit (by 0.1%), reaching a total of R$ 724 billion.
For earmarked credit, the balance reached R$ 1,541 billion, a reduction of 0.1% in the month and 2.5% in 12 months. For individuals, there was an increase of R$ 761 billion (0.6%), as rural credit and real estate loans grew. For companies in this segment, there was a decline of 0.7%, falling to R $ 779 billion.