Slovakia faces vulnerabilities in the residential real estate sector

The European Systemic Risk Board warns that seven EU countries, including Slovakia, face medium-term vulnerabilities in the residential real estate sector. Rising house prices and household debts are a source of systemic risk to financial stability and can have serious consequences for the real economy. The Board praised the NBS central bank for taking measures to reduce mortgage lending and increase banks' capital cushions. If the risks continue to accumulate, it will recommend tightening up the measures. Germany, Austria, Hungary and Czechia also face risks. (hnonline.sk) An average apartment in Austria costs 10.5 annual salaries, and only Slovakia and Czechia have higher house prices in the EU.

(e15.cz)