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August 23, 2018 12:00 am | FILED UNDER: business

Personal Debt Rises 8.5% To Kc2,230 Billion Year To Date

By ČTK Financial Chart on computer screen

Prague, Aug 23 (CTK) – The total Czechs’ debt increased annually by 8.5 percent to Kc2,230bn at the end of the first half of this year, while the volume of debts with default risk fell by 9.2 percent to Kc36.9bn, according to data from the banking and non-banking registers of client information.

 

The number of people having problems repaying their housing loans went down by 5,000, and the number of those not paying back consumer loans decreased by more than 20,000, the registers said.

 

The volume of long-term debt reached Kc1,800bn at the end of H1, which is 8.5 percent more year on year.

 

Short-term debts rose by 8.4 percent to Kc456.7bn.

 

“While long-term and short-term debt volumes have been increasing, the number of clients remains the same as a year ago, which means they owe a bigger average amount,” executive director of the banking register Lenka Novotna said.

 

A long-term debt per client is Kc1.58m on average, and the average short-term sum owed is Kc190,000, Novotna said.

 

Mortgage loans account for 65 percent of the total amount owed, with their volume rising annually by nearly Kc115bn, or 8.7 percent.

 

The number of people with mortgage loans is around 1.11-1.12 million, Novotna said.

 

The overall volume of short-term debt with default risk dropped annually by 5.5 percent to Kc25.9bn. The number of clients having trouble paying off their short-term debts fell to 276,000 in Q2.

 

The average amount that people have not paid back increased by nearly Kc5,000 to Kc483,000 and by Kc1,375 to almost Kc94,000 in housing loans and consumer loans, respectively, the executive director of the non-banking register Jiri Rajl said.

 

The volume of long-term debt with default risk fell annually by 16.9 percent to Kc10.9bn, and the number of clients with such debts decreased by 17.7 percent to 4,880.

 

Debt volume in Czech Republic’s regions:

 

region

long-term debt (Kc bn)

short-term debt (Kc bn)

Prague

332.7

49.3

Central Bohemia

279.2

62.4

South Moravia

211.2

46.7

Moravia-Silesia

147.7

53.1

Usti

84.6

39

South Bohemia

92.4

29.6

Hradec Kralove

91

24.6

Olomouc

88.6

25.4

Pardubice

74.6

19

Plzen

84.3

24.5

Zlin

78.9

20.9

Liberec

67.5

21.1

Vysocina

61.4

18.9

Karlovy Vary

37

15.8

 

Source: CRIF

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