Some Slovaks are too indebted, thousands of families under threat

The central bank surveyed the situation of households asking for deferral of payment instalments.

Illustrative stock photoIllustrative stock photo (Source: Photo by Christian Dubovan on Unsplash)

Nearly one in 10 households in Slovakia who has asked for their payment instalments to be deferred due to the coronavirus crisis are threatened with living on the brink of a financial precipice or even falling into the abyss.

The recent poll was carried out in July by the Focus agency for the National Bank of Slovakia (NBS), the country’s central bank. The poll was on how households would be able to start repaying their instalments after nine months, following the end of the so-called instalment moratorium where they are not required to repay their commitments. It suggests that 9 percent of more than 1,000 families polled would have financial problems, the economic Index magazine reported.

NBS plans to carry out five more surveys by December.

Lost contact with reality

Although NBS Governor Peter Kažimír praised the deferral of instalments, he said that banks have lost contact with clients for nine months. Households have postponed instalments of altogether 51,000 mortgages and 61,000 consumer loans.

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

Get daily Slovak news directly to your inbox

Top stories

News digest: Long queues around Slovakia on the first day of nationwide testing

Hundreds of thousands got tested during the first five hours. Experts warn it is too early to interpret the results.

Drive-in testing site in Bratislava.

Afraid of testing? Minimise your risk of infection with these test day tips

Coughing is the most dangerous part of the testing process.

Zborov, the Bardejov district

UPDATED: Nationwide testing for COVID-19 is on

Long queues have formed in front of most testing points since early morning. Some drive-through sites closed in Bratislava

Testing in Trenčín, western Slovakia

The big testing: When and where to show up, and what if I don't want to? (FAQ)

Here is what we know about the practicalities of the nationwide testing so far. Testing also applies to foreigners and diplomats in Slovakia.

Pilot testing in Bardejov