In 2023, the indebtedness of Czech residents grew by 5.1% to 3.31 trillion korunas. The volume of debt threatened by non-repayment increased by 6.2% to 29.5 billion korunas. This data comes from the banking and non-banking client information register provided by CRIF – Czech Credit Bureau.
According to the bureau, the volume of housing loans increased by 4.4% to 2.73 trillion Kč, significantly less than in previous years. For instance, at the end of 2021, there was a 17% increase. However, the number of clients who took out a housing loan decreased by 2.1% to 1.06 million.
The end of last year, on the one hand, indicates a slight revival of the mortgage market. On the other hand, the number of clients with housing loans is decreasing in the long term, and the amount per client is increasing. The apparent revival is, therefore, caused mainly by rising real estate prices. The number of younger people who take out housing loans is significantly decreasing.
According to the data, the volume of short-term debt at the end of last year was 579.4 billion korunas, an increase of 8.9% year on year. The volume of debt for consumption increased at the end of 2022 in all regions, the fastest in Prague, where it increased yearly by 10.7% to 65.4 billion korunas.
At the end of 2023, unpaid housing loans amounted to 4.4 billion korunas. The volume of unpaid short-term loans increased yearly by 9.5% to 25 billion korunas. The number of clients who have problems with repayment also increased by 1.1% to 174,000 people.