TABJ – June 21 – Standard Bank, one of Africa’s biggest financial institutions, is expected to grant personal and business loans worth more than R50bn in South Africa this year, thanks to a surge in demand for credit by consumers and companies.

The continuing sovereign debt problems in Greece, however, could jeopardise the plans, as the problems could spark a European antipathy that spreads throughout the world.

In its regional outlook for Europe, the International Monetary Fund, which is funding about a third of the rescues in Greece, Ireland and Portugal, recently said the core euro remained a downside risk.

Peter Schlebusch, CEO of personal and business banking at Standard Bank, is more optimistic. He said the group had become the number one mortgage lender in South Africa, with a 31 percent market share.

“There is now an appetite among both businesses and consumers to borrow again, but with a better sense that they will be able to service loans,” Schlebusch said. “Current indications are that we are on track to improve on last year’s R50bn on new loans, which was the highest level since the recession began in 2008.”

Banks around the world have been frequently criticised for being reluctant to lend – partly due to blame attributed to them over the recession.