Bank credit to the private sector fell deeper into red in December 2011, with the annual growth rate of total credit granted to the domestic private sector decreasing to -3.2 percent in December 2011 (November 2011: -2.4 percent, December 2010: 0.0 percent), the Bank of Greece announced on Monday.

The central bank, in a monthly report, said that net flow of total credit to the domestic private sector was negative amounting to EUR 1.746 billion euros (December 2010: positive net flow of 244 million).

The net flow of credit to enterprises in December 2011 was negative, amounting to 1.422 billion (December 2010: positive net flow of 475 million) and the annual growth rate of credit decreased to -2.0 percent from -0.5 percent in November 2011 (December 2010: 1.1 percent).

In particular, the annual growth rate of credit to non-financial enterprises decreased to -1.8 percent in December 2011 from -1.0 percent in the previous month, while the annual growth rate of credit to insurance corporations and other financial intermediaries, which includes significant intra-group transactions, decreased significantly to -5.2 percent in December 2011 from 10.0 percent in November 2011.

The net flow of credit to sole proprietors and unincorporated partnerships was zero in December 2011 (December 2010: positive net flow of 28 million euros) and the annual rate of change of credit stood at -6.6 percent in December 2011 from -6.5 percent in the previous month (December 2010: 0.3 percent).

The central bank said that in December 2011, the net flow of credit to individuals and private non-profit institutions was negative, amounting to 324 million euros (December 2010: negative net flow of 259 million).

As a result, the annual growth rate of credit to individuals and private non-profit institutions stood at -3.9 percent in December 2011 from -3.8 percent, in November 2011 (December 2010: -1.2 percent).