The amount outstanding in terms of foreign currency loans (FX loan volume) owed by Austrian households has fallen tangibly in the third quarter, registering the heaviest drop since the global financial crisis broke out in 2008. As at the end of September 2012, € 33.4 billion had still to be repaid. After allowing for exchange rate fluctuations this is € 5.1 billion or 13.1% lower than at the same point last year. In comparison with the second quarter of 2012, the amount to be repaid has fallen by € 2.0 billion or 5.5%. Looking back to autumn 2008 – when Austria’s Financial Market Authority announced its prohibition on the granting of new foreign currency loans along with other initiatives intended to limit the risk of outstanding FX loans – the total volume of borrowings has decreased by € 13.9 billion after allowing for exchange rate fluctuations, or 29.4%. As at the end of September 2012, the total share of lending to domestic households in foreign currencies amounted to 25.3%, the lowest in 10 years. This information was disclosed in the FMA’s Survey on Changes in Foreign Currency Loans in Q3 2012.
“The strong decline in the proportion of foreign currency lending to private borrowers is clear evidence that the FMA’s measures to limit risk are taking effect. In addition, we also take this decrease to be a sign that borrowers and lenders are more risk aware,” said FMA Executive Directors Helmut Ettl and Kurt Pribil.
As at the end of September 2012, the majority (92.9%) of outstanding foreign currency loans is denominated in Swiss francs, with the rest almost exclusively in Japanese yen. Since the beginning of 2008, the Swiss franc has climbed in value against the euro by 36.8%. The Swiss National Bank has intervened to prevent any further rise, by pegging its currency at 1.20 Swiss francs per euro.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43 (0)1 24959 5106
+43 (0)676 882 49 516