Changes in loans to households | Payday Loans

23 Aug

According to the State Audit Office, 59% of households’ loans as of December 31, 2007 and 68.5% as of December 31, 2008 were foreign currency loans. Read cgdnews.org for a critique

The share of household consumer and other free-of-use loans

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At the end of 2007, the share of household consumer and other free-of-use loans (personal loans, commodities loans, car loans, freelance mortgages) was 37.8%, compared to 40% at end-2008 (42.8% and 41%, 3%) was almost the same. Within foreign currency debt, the share of consumer and other loans (41.3% and 42.6%) exceeded the share of home loans (33.7% and 36.4%) in both years.

The number of live retail defaults (credit defaults) recorded in the Central Credit Information System (KHR, formerly known as the BAR list) increased by 55% in 2008 (from 433 thousand to 669 thousand). At the end of 2008, the total number of omissions in the system – live and closed – was approximately 999,000. However, in this register, Q4 crisis impact due to listing rules not yet reported.

90 days overdue for payment

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The Central Credit Information System records debtors and defaults which are more than 90 days overdue for payment of a loan amounting to at least the minimum wage in a loan or credit agreement with financial institutions.

The loan can be consumer credit, overdraft, mortgage, home loan, car loan, personal loan etc. A closed transaction is when the customer’s total debt has been settled but the customer remains in the register for another five years (ie passive BAR list / KHR list status; active BAR list / KHR list status).

As a result of the financial crisis

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The oversupply on the housing market, already in 2007, continued to grow. According to expert analysis, in the last two months of 2008, the unit price of second-hand homes in each category and area declined.

In contrast, prices for new homes were 1-5% higher than in the first 10 months of the year. According to experts, when negotiating prices, buyers who are creditworthy and have adequate savings improve, while sellers are forced to cut prices.

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