We do not expect cheap apartments, says the head of Česká spořitelna, Tomáš Salomon

Almost a quarter of a million Czechs enjoy the last two weeks of apparent well-being. But from November, they will have to start repaying their mortgages and consumer loans again. The pandemic in the Czech Republic, meanwhile, is writing its second and much wilder act than spring. The economy is still less closed than last time, but every new morning it threatens to tighten. But debtor armageddon is unlikely to occur from November. “More than half of the savings bank’s clients have already completed the postponement themselves. Of the remaining ninety percent, he says they will be able to start paying back as standard. Even our analyzes now show that the number of clients who may have problems repaying even after the moratorium will be in percent, “says the head of Česká spořitelna and the president of the Czech Banking Association Tomáš Salomon, noting that banks will be in deferred payments. continue individually.

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The Czechia is plunging into the second wave of the pandemic, to what extent is this reflected in the savings bank’s business?

It is too early for estimates. We are pleased with how quickly the economy has managed to falter during the summer, but the question is what the second wave will do, which is at least far more significant from a health point of view. In terms of transaction activity, economic impacts are still an issue.

Are we not aiming for the effect of a delayed crisis? There are several support programs, typically a moratorium, which will end soon and in a difficult situation.

Regarding the moratorium and deferral of payments, we closely monitor the situation and behavior of clients. At the CBA, we agreed that it is not sensible to extend these support measures across the board at this time, and it is better to return to normal. Banks are strong enough to help their clients and are ready to resolve any repayment problems with clients individually. If I have to speak for the savings bank: with clients who will not be able to repay after the end of the moratorium, we will talk about individual conditions for extending the deferral of installments or a temporary reduction in installments.

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Is it really still true that the banks are strong enough?

Yes, it does. If you look at the half-yearly capital adequacy statistics, we are even on record. This is, of course, also due to unpaid dividends. However, the sector is healthy and ready to help the economy, after all, the volume of loans that flowed into the economy in the first seven months is surprisingly higher than last year, which was a record year in many respects.