volume of foreign currency loans outstanding ?? 9.7 billion, now only 5.7% of all loans to private households

Adjusted for currency effects, outstanding foreign currency loans decreased by 17.3% or 2.03 billion euros in the third quarter of 2021, compared to the corresponding quarter of the previous year. Since the ban on granting new loans in autumn 2008, the outstanding amount corrected for currency effects has been reduced by 38.40 billion euros, or 81.3%. Compared to the previous quarter (Q2 / 2021), volume decreased by 340 million euros or 3.4%. In absolute figures, the volume of foreign currency loans to private households fell to 9.74 billion euros in the third quarter of 2021 (Q3 2020: 11.83 billion euros). These were the findings of the FMA’s survey of foreign currency lending in the third quarter of 2021.

The share of loans denominated in foreign currencies in all household loans outstanding stood at 5.7% in the third quarter of 2021 (compared to 7.2% in the third quarter of 2020). At its peak, in 2006, foreign currency loans accounted for about a third of all loans. At the end of September 2021, 96.7% of the volume of the amount due for foreign currency loans was for loans denominated in Swiss francs (CHF), with the remaining amount being almost exclusively in Japanese yen (JPY).

Since the start of 2008, the Swiss franc (CHF) has appreciated by 53% until September 30, 2021 against the euro; In the third quarter of 2021, the exchange rate fluctuated between 1.0711 and 1.0985. A borrower who took out a foreign currency loan of € 100,000.00 at the start of 2008 would now have to repay nearly € 153,000 on the sole change in the exchange rate, regardless of the additional interest payments also to be made.

Journalists can direct their requests for further information to:

Klaus Grubelnik (FMA spokesperson)

+ 43 / (0) 1 / 24959-6006

+ 43 / (0) 676 882 49 516

Warning

FMA – Financial Markets Authority published this content on 22 December 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 22 December 2021 12:02:04 PM UTC.