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Banking union ZBP sees value of new mortgages at PLN 45-50bn in 2010

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Date: 2010-03-10 15:09

The Polish Banking Association (ZBP) estimates that the value of new mortgage loans will amount to PLN 45-50bn in 2010, it said in a report, published on Wednesday.


"Assessing tendencies which emerged last year (flat prices' stabilization, announcement of Recommendation T, increasing households debt in zloty and euro), the ZBP estimates that the rise should be higher than 15% as compared to 2009," the report reads. 

The ZBP expects credit margins to fall in 2010, which should increase availability of credits. It estimates that margins may stabilize on the average level of 200-250bp. Lately, margins dropped by as much as 70bps in some banks. 

The organisation estimates the value of mortgage loans extended in Q4/2009 at PLN 10.8bn, compared to PLN 10.9bn a quarter earlier. It also deems that the Recommendation T - which is due to enter force in the next few months, putting a limit on customers' earning-to-loand ratio - would likely lower credit action in this segment by around PLN 2bn. 

The value of mortgage loans reached PLN 214bn at the end of 2009, and the number of active mortgage agreements amounted to PLN 1.37mn. The average value of a mortgage credit is PLN 203,000.

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