The payment discipline of Czech citizens continues to improve for mortgage and building society loans. Mortgages are most successful in Prague, where people borrow the largest amounts for housing and also pay off their loans best. The volume of non-performing debt decreased by 4.5 billion, down 10.9% year on year. Similarly, the number of people who had difficulty repaying their housing loans decreased by 5,000 year-on-year. This stems from data published by the Banking and Non-Banking Client Information Register.
How much do we owe?
The total debt of the Czech population at the end of the first quarter of this year totaled 2.18 trillion dollars and grew by 175.1 billion dollars, ie by 8.7%.
The total amount of non-performing long-term debt (mortgage loans supplemented by building savings loans) in any region does not exceed 1.5%.
They pay the best in Prague
Prague residents pay off their loans very well. This is despite the fact that the sums they borrow for housing are often double that of other regions. At the end of the first quarter of 2018, only 0.3% of the debt on loans provided in Prague were not properly repaid.
Payment morale is growing
The volume of non- performing debt , a debt that has not been paid for at least three consecutive installments or has been repaid, has been decreasing for 16 consecutive quarters. The number of clients with non- performing long-term debt (non-performing housing debt) amounted to 23,855 in the first quarter. This represents a decrease of 18.6% compared to last year.
Total debt continues to rise
On the contrary, while the volume of debt at risk of default is decreasing , the volume of total debt of the population continues to rise . In the first quarter of this year, its volume increased by 175.1 billion to 2.18 trillion dollars. Similarly, the average amount borrowed by people has increased. In the case of long-term debt, the increase was almost 9%. Thus, each client with a mortgage or building savings loan owed on average USD 1.55 million in the first quarter.
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