ATHENS, Nov 26 (Reuters) - Growth in Greek household borrowing slowed further to an annual 3.3 percent pace in October from 3.9 percent in September, the central bank said on Thursday.
A sharp slowdown in economic activity coupled with tighter credit conditions are eating into the loan growth that had fuelled consumption and economic expansion in Greece and boosted bank earnings.
The Bank of Greece said household loan balances grew by 106 million euros ($160 million) in October. Mortgages grew at a slower 4.0 percent annual pace, or 128 million euros, from 4.3 percent in September and 11.5 percent in December 2008.
Consumer credit expanded by 2.4 percent, down from 3.3 percent in September.
In the 16-nation euro zone, loans to households and businesses fell by 0.8 percent from a year earlier in October, accelerating its first-ever annual decline recorded in the previous month, the European Central Bank said earlier.
Greek authorities have sought to keep the pace of credit expansion above 10 percent this year, and have launched a 28 billion euro bank support package to keep the economy adequately funded.
The Bank of Greece said credit to business also slowed, to an annual 5.4 percent clip in October from 6.9 percent in September.
(Reporting by Harry Papachristou; Editing by Mike Peacock) ($1=.6625 Euro) Keywords: GREECE CREDIT/

(harry.papachristou@thomsonreuters.com; +30 210 3376455; Reuters Messaging: harry.papachristou.reuters.com@reuters.net)

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