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Czech Household Debt on the Rise

Published: October 31, 2012; 18:02 · (Vindobona)

Against 2011, Czech household debt was up by 4.2%. At the end of September, the level of debt of Czech households to banks reached € 45.8bn.

Czech Household Debt on the Rise / Picture: © Czech National Bank

According to the Czech National Bank (CNB), the debt level was up by € 1.88bn against September 2011. Compared to August 2011, debts to banks rose by € 200m. Debts of companies rose by € 0.66bn to € 38.5bn. What is more, deposits decreaseing by 7.3% to € 43.3bn.

The moderate increase in debt may be interpreted as first success of the monetary easing policy of the Czech National Bank. As the Czech economy is contracting, CNB cut the interest rate drastically. At the moment, the base rate comes at 0.25%.

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