BRATISLAVA, December 4, (WEBNOVINY) – In the third quarter of this year, banks provided EUR 945 million in real estate loans to households, which is an increase by EUR 145 million from a year ago. The previous significant growth of interest in loan products for real estate purchases, however, declined. The average yearly increase in new loans decelerated to less than 14 percent, while last year the average represented 41 percent. The National Bank of Slovakia (NBS) ascribes this development to the summer holiday season, tension on financial markets and prevailing negative sentiment. Positive tendencies from the real economy did not continue, while rather negative expectations affected the real estate market, too.
In the third quarter, the structure of provided loans moderately changed. The portion of other real estate loans decreased by additional three percentage points to 62 percent. Mortgages remained at 24 percent, and home construction loans made up less than one percent. The portion of interim loans slightly grew to 13 percent. The central bank sees behind the increase marketing strategy of home savings banks offering softer interest rates for the starting period. Households still preferred interest rate fixations from one to five years.
The growth of provided real estate loans to households reflected in the overall volume of loans. Households continue to refinance old loans with new loans with more advantageous interest rates. At the end of September, the volume of defaulted loans reached EUR 361 million. Compared with the end of the previous quarter, their volume moderately increased, in particular within interim and other loans for real estates.
Over the last quarter, interest rates reported a slightly growing tendency. In spite of a moderate decline in market interest rates, which in other eurozone countries reflected also in client rates, in Slovakia interest rates on real estate loans went up modestly.
SITA
