Bank loans are rising on the back of growing 30-40 age group and wage hikes
Bank loans of Slovak households are growing at the fastest pace in the EU because the growing 30-40 age group is investing into housing, and wages are rising steeply, reckons the Finance Ministry’s analysis. Before 2008, Spain and Ireland had the largest share of 30-somethings, and these countries then experienced the largest real estate bubble. Now, Slovakia has the highest share. The Slovak share of non-performing housing loans is still relatively low, but this could change if a crisis hit and unemployment soared. The Ministry recommends speeding up the issuance of building permits to facilitate the speedy response of developers to surges in demand for housing.