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 declined to 9.5% in May 2008, from 9.8% in April. The annual rate of decline of credit extended to general government increased to 1.8% in May, from 0.3% in April, while the annual growth of credit extended to the private sector stood at 11.9% in May, after 12.0% in April. Among the components of the latter, the annual rate of growth of loans to the private sector decreased to 10.4% in May, from 10.6% in the previous month. The annual growth rate of loans to non-financial corporations decreased to 14.2% in May, from 14.9% in April.2 The annual growth rate of loans to households decreased to 4.9% in May, from 5.2% in the previous month. The annual rate of growth of lending for house purchase declined to 5.5% in May, from 5.9% in April. The annual rate of growth of consumer credit decreased to 4.8% in May, from 5.2% in April while the annual growth rate of other lending to households stood at 2.0% in May, after 2.1% in the previous month. Finally, the annual rate of growth of loans to non-monetary financial intermediaries (except insurance corporations and pension funds) increased to 25.7% in May, from 22.2% in the previous month.
Over the 12 months up to May 2008, the net external asset position of the euro area MFI sector decreased by EUR 229 billion, compared with a decrease of EUR 174 billion over the 12 months up to April. The annual rate of growth of longer-term financial liabilities of the MFI sector stood at 6.4% in May, unchanged from the previous month.
