Turning to the main counterparts of M3 on the asset side of the consolidated balance sheet of the MFI sector, the annual growth rate of total credit granted to euro area residents was 8.7% in July 2007,compared with 8.6% in June. The annual rate of decline of credit extended to general government stood at 3.7% in July, after 3.6% in June, while the annual rate of growth of credit extended to the private sector was 11.6% in July, compared with 11.5% in June. Among the components of the latter, the annual rate of growth of loans to the private sector stood at 10.9% in July, after 10.8% in the previous month. The annual growth rate of loans to non-financial corporations increased to 13.6% in July, from 13.3% in June.2 The annual growth rate of loans to households decreased to 7.0% in July, from 7.2% in the previous month. The annual rate of growth of lending for house purchase declined to 8.1% in July, from 8.4% in June. The annual rate of growth of consumer credit stood at 5.8% in July, unchanged from the previous month, and the annual growth rate of other lending to households was 3.2% in July, also unchanged from the previous month.
Finally, the annual rate of growth of loans to non-monetary financial intermediaries (except insurance corporations and pension funds) increased to 20.7% in July, from 17.9% in the previous month.
Over the 12 months up to July 2007, the net external asset position of the euro area MFI sector rose by EUR 282 billion, compared with a rise of EUR 262 billion over the 12 months up to June. The annual rate of growth of longer-term financial liabilities of the MFI sector stood at 9.0% in July, after 9.1% in June.
