The number of ongoing loans rose by just one thousand accounts in the first three months of this year, according to data of the Credit Bureau, although sales of 7,000 new mortgage loans were reported in the same interval through the “First Home” government-backed program alone.
Banks had a total portfolio of 270,000 real estate loans at the end of March, worth EUR8.5 billion. The 6,000-account difference between new sales and the loan volume rise recorded in the first quarter therefore reflects the number of loans closed through foreclosure sales, given that few loans are maturing at this time. Early repayment is less likely.
The rise in the number of foreclosed homes comes at a time when the ratio of non-performing loans has climbed towards one fifth of the overall portfolio and puts pressure on banks’ operating profit.
(English version by Daniela Stoican)