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Published:
This is an archived release.
Few choose fixed interest rate loans
Less than five per cent of banks’ lending to households had fixed interest rates at the end of 2006. As a moderate rise in interest rates has occurred lately, an increase in the share of loans with fixed interest rates was expected, but such an increase was not registered in the fourth quarter of 2006.
The share of loans with fixed interest to local governments, non-financial corporations and households has declined from about 20 per cent in the first quarter of 2004 to barely 12 per cent at the end of the fourth quarter of 2006.
Households and non-financial corporations reduce use of loans with fixed interest
The share of loans with fixed interest accounted for 8 per cent of total loans to households in the fourth quarter of 2006, a decline from 18 per cent at the end of the first quarter of 2004. The share of loans with fixed interest to non-financial corporations fell from 19 per cent to 12 per cent in the same period. However, non-financial corporations may use other types of hedging instruments, for instance interest rate swaps serving the same purpose as fixed interest rate loans.
Local governments increase use of fixed interest rate loans
After a fall in the share of fixed interest rate loans to local governments from the third quarter of 2004 to barely 40 per cent in the third quarter of 2005, the share of fixed interest rate loans rose moderately to 46 per cent at the end of 2006.
The statistics is now published as Interest rates in banks and mortgage companies.
Additional information
This statistics show loans broken down by the remaining fixed interest rate period. The fixed interest rate period is measured as the time from the end of the reported period to the next interest rate regulation. Differences between figures in the text and the tables due to rounding off may occur.
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