The measures introduced by the FMA to limit the risk arising from foreign currency loans are having a lasting effect. The amount outstanding of foreign currency loans (FX loan volume) owed by Austrian households clearly decreased again in Q3 2013. At the end of September 2013, € 28.5 billion still had to be repaid. After allowing for exchange rate fluctuations, this is € 4.1 billion or 12.6% lower than during the same period one year earlier. Compared with Q2 2013, the decline amounted € 0.7 billion or 2.4%. In autumn 2008 the Austrian Financial Market Authority (FMA) announced a ban on new FX loans, along with other initiatives intended to limit the risk posed by such outstanding FX loans. Since then the volume of borrowings has fallen by € 17.8 billion or 38.5%, after exchange rate adjustment. This information was disclosed in the FMA Q3 2013 Survey on Changes in Foreign Currency Loans.
At the end of Q3 2013, the majority (94.8%) of outstanding FX loans continued to be denominated in Swiss francs, with the rest almost exclusively in Japanese yen. Since the beginning of 2008, the Swiss franc has climbed in value by 35.4% against the euro.
The FMA’s consistent strategy to limit the risk arising from foreign currency loans is also reflected in the latest report on the subject by the European Systemic Risk Board (ESRB). In the report the ESRB concludes with respect to the implementation of its recommendations on lending in foreign currencies that, apart from Malta, only Austria was “fully compliant” with all recommended actions, i.e. has fully implemented each recommendation.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-6006
+43/(0)676/882 49 516