UPDATE 1-Greek credit growth seen at 5-6% by yr end- cenbank

* Credit growth to private sector to slow to 5-6 pct in 2009

* Credit growth still positive in Greece vs euro zone

* Interest spreads higher in Greece vs euro zone

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ATHENS, June 25 (Reuters) - The pace of credit expansion to the private sector in Greece will slow to 5-6 percent by the end of the year, the country's central banker said on Thursday.

"As things look, the rate of credit expansion to the private sector will be around 5 to 6 percent by the end of 2009," Bank of Greece Governor George Provopoulos said in a speech to consultative body OKE, Greece's economic and social committee.

Greece's economy is slowing sharply after years of robust growth, hit by the global downturn. The EU Commission, the IMF and the OECD all forecast a recession this year.

Earlier in the year Greek authorities had said they wanted the pace of credit expansion to stay above 10 percent in 2009 and came up with a 28 billion euro ($39 billion) liquidity support scheme to keep the economy adequately funded. Based on central bank data, growth in Greek household borrowing slowed to an annual 8.3 percent pace in April from 9.2 percent in March. Credit to businesses also fell to an annual 11.8 percent clip in April from 12.2 percent in March.

Provopoulos said low interest rates after Greece joined the euro zone had contributed to high credit expansion rates up until October 2008. Credit growth started to decelerate thereafter but remained positive in the first four months of 2009, except in January.

"In the first four months of 2009 the interest rate margin rose slightly in Greece, by 47 basis points, as deposit rates dropped more than lending rates. In contrast, the interest rate margin in the euro zone fell slightly, halting the convergence trend," Provopoulos said.

As a result, in the first four months of this year the difference between Greek and euro zone interest rate spreads doubled to 161 from 81 basis points, he said.

Provopoulos said sufficient liquidity in the euro zone's banking system was a precondition to ensure adequate funding for households and businesses.

Seeking to spur bank lending and pull the economy out of recession, the European Central Bank poured 442 billion euros of one-year funds into money markets on Wednesday, its biggest liquidity injection ever.

"It is clear that the Eurosystem's interventions contributed to averting a large drop in the outstanding loans balances in the euro zone, i.e of the order of 30 percent, that had been seen during other crises in the past," Provopoulos said.

(Reporting by George Georgiopoulos; Editing by Victoria Main)