FOCUS SHORT

Slovaks among the least indebted

SLOVAK households are among the least indebted within the European Union. The National Bank of Slovakia (NBS) attributes this to the short history of the household loan market, which only developed in a significant way from around 2003, the SITA newswire wrote.

SLOVAK households are among the least indebted within the European Union. The National Bank of Slovakia (NBS) attributes this to the short history of the household loan market, which only developed in a significant way from around 2003, the SITA newswire wrote.

Housing loans dominate the Slovak household loan market, making up approximately three-quarters of loans provided by banks. This is slightly below the EU average, but above the average in central and eastern Europe.

In September 2011, housing loans made up 74.4 percent of aggregate loans taken by Slovak households. Consumer loans made up 12.3 percent and debts to instalment sale companies made up 5.9 percent, followed by leasing companies with 2 percent. Credit cards and other loans accounted for 1.2 percent and 9.5 percent respectively.

The Slovak housing loan market has changed over the past 15 years. While in the second half of 1990s loans from housing construction saving banks dominated in Slovakia, the new millennium brought the development of mortgages offered by regular banks.

This has brought another significant feature: the dominant position of banks in the household loan market.

“The housing loan market is generally covered by the banking sector and this applies in Slovakia too,” the central bank wrote. “This is also the reason why the share of the total debt of households held by leasing companies and instalment sale companies is relatively small, at about 8 percent.
Moreover, this share has been shrinking over the last few years.”

Top stories

Illustrative stock photo

Law change makes cannabidiol legal

CBD allowed in cosmetics, but off the menu for food products.


4 h
Tens of thousands of fans attended the match between Hungary and Portugal in Budapest.

Delta variant to shake up Slovak summer. Football match in Budapest may have been a critical moment

The government is set to toughen up the conditions for entering the country even from EU member states. The decision will be made next week.


17 h
OĽaNO MP Anna Záborská

Slovak lawmakers to the EP: Sexual and reproductive health is our affair

The parliament passed a resolution that slams an EP report on sexual and reproductive health and rights in the EU.


23 h

Fire in the main Košice hospital forced evacuation of patients and staff

60 patients, including some on lung ventilation, have been evacuated.


20 h