The share of non-performing loans, that is, loans in arrears, fell again in the Czech Republic in October. It fell 0.24 percentage point to 4.93 percent for consumer credit, 0.08 point to 3.94 percent for businesses, and 0.02 point to 0.79 percent for mortgages. It’s the lowest in twenty years.
In a year-over-year comparison, the share of non-performing loans in both corporate and consumer loans is several tenths of a percentage point higher than last year. But in the case of companies, it fell for the first time this year to less than four percent. “It must be said that few people expected this,” said the association’s advisor, Miroslav Zamenek. According to him, October statistics confirm that the share of non-performing loans is among the lowest in Europe in the European comparison.
The coming months may change the trend so far, whether it is due to the sharp rise in energy prices along with higher interest rates, the burden on families with limited budgets, or the difficulties facing companies and companies affected by the virus, the high prices of inputs and the instability of supplies. “However, in the case of loans to households and businesses, the non-performing exposures are at a much lower level, for example, after the global financial crisis at the beginning of the last decade,” Zamenek said.
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