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2018 Annual Economic and Financial Review
ANGUILLA
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Eastern Caribbean Central Bank
moderated by a 1.6 per cent ($1.5m) decline
in private sector time deposits. In respect of
narrow money, currency with the public and
private sector demand deposits increased by
12.8 per cent ($2.9m) and 3.9 per cent
($1.9m) respectively, while EC$ cheques and
draft issued contracted by 88.1 per cent
($2.2m).
Domestic credit contracted by 1.5 per cent
to $533.3m, in contrast to growth of
1.8 per cent to $541.5m during 2017.
This
development was largely attributable to a
4.7 per cent ($31.7m) reduction in outstanding
credit to the private sector. Credit to both
households and businesses declined by
4.6 per cent ($16.6m) and 5.1 per cent
($15.3m) respectively, during the review
period. The decline in domestic credit was
also influenced by 26.4 per cent ($14.5m)
increase in the net deposit position of non-
financial public enterprises, largely reflecting
an increase in their deposits at commercial
banks. By contrast, the net deposit position of
the central government fell by 51.5 per cent
($37.9m) to $35.7m, largely due to a decline
in deposits at the central bank ($59.4m) to
$0.1m
.
This decline was partially offset by a
$20.7m increase in central government
deposits at commercial banks. The reduction
in deposits was largely attributable to the
drawdown of the CDB recapitalisation loan,
which was held in escrow at the Central Bank.
Commercial bank credit to the central
government increased by 25.7 per cent
($2.8m), while credit extended by the Central
Bank declined by 23.3 per cent ($3.5m) due
to ongoing amortisation.
An analysis of changes in the distribution of
credit indicates contraction across most
sectors.
Some of the key areas which
recorded a decrease in credit include
construction and land development ($19.8m),
personal ($17.5m) and distributive trade
($2.5m). Within the personal sector, credit
for the acquisition of property contracted by
$13.1m to $164.2m, while credit for “other
personal”, which includes items such as
education loans, retreated by $3.9m to
$167.6m. Despite the overall contraction,
credit expanded to tourism ($5.5m),
government and statutory bodies ($3.2m) and
professional and other services ($1.0m).
The net foreign assets of the banking system
rose by 10.3 per cent to $544.8m compared
with an increase of 14.3 per cent to $494.0m
during 2017.
The outturn was primarily
driven by a 43.3 per cent increase ($139.4m)