Czech household debt to banks falls for first time since 2016

Czech household debt to banks fell in April by CZK 19 billion in month-on-month terms, according to the Czech Credit Bureau (CRIF). The reason is most likely the toughening of rules on providing mortgages which were put in place in April. Mortgage debt fell by CZK 15 billion for that month. Nevertheless, household debt didn’t just fall when it comes to mortgages, but also in other segments such as consumer loans (down by CZK 5 billion) or loans to companies (CZK 5 billion) and the self-employed (CZK 1 billion).

While household debt went down, savings grew among households in April, with the exception of the self-employed.

This is the first fall in month-on-month household debt in Czechia since January 2016.

The Czech Credit Bureau based its analysis on data from the Czech National Bank and the informaceofirmach.cz website.