Czechs take loans worth Kc1,370bn in 2012, up by Kc67bn yr/yr

​Czechs borrowed a total of Kc1,370bn last year, Kc67bn more than in 2011, according to data from the banking and non-banking credit registers run by company CRIF - Czech Credit Bureau, CRIF said today.

​The number of Czechs with loans reached 2.9 million last year. The number of loan contracts amounted to 5.7 million.

The volume of loan-term loans, namely mortgage loans and loans from home-building savings, last year rose by Kc56bn to Kc1,016bn.

The number of clients with long-term loans increased by 13 percent, or 70,000, year-on-year.

The average size of a long-term loan, however, fell by Kc104,000 to Kc1.6m.

"Despite the fact that citizens were hit fully by the impact of the economic recession last year, a number of people were financial healthy enough to be able to get long-term loans. The high increase shows that people made use of advantageous interest rates. As many as 7 percent of citizens over 14 have mortgage or housing loans at present,"Zuzana Pecena, an executive director of CBCB - Czech Banking Credit Bureau, which operates the banking register, said.

The volume of short-term loans (consumer loans and leasing contracts) grew by 3 percent year-on-year to Kc354bn.

The total number of clients using short-term loans increased by 2 percent, or 43,000, to 2.5 million people.

The average size of a short-term loan rose by 1 percent to Kc140,000.

The category of short-term loans is dominated by personal loans with a share of 46 percent. Their volume, however, fell by Kc10bn on the year.

The volume of consumer loans, with 785,000 clients, on the other hand, increased by Kc11bn year-on-year.

The volume of loans drawn via cards increased by Kc12bn. This kind of loans was used by 966,000 people, 26 percent more than in 2011.

The total volume of bad loans last year grew by Kc5.5bn to Kc45.7bn. A total of 275,000 clients did not pay their loans duly, compared with 300,000 in the previous year.

The volume of bad long-term loans amounted to Kc16.4bn. Out of the total number of clients with long-term loans, 5 percent did not pay their loans duly.

"Clients are realistic when estimating their possibilities, so 95 percent of them pay off their long-term loans without problems," Pecena said.

The volume of bad short-term loans reached Kc29.3bn, with 11 percent of clients not paying off their short-term loans duly.

The number of users of the non-banking register rose to 28. The banking register has 26 users, particularly banks and building societies.