The Czech National Bank may get extended powers in being able to dictate
conditions for mortgage loans to banks, according to an amendment to the
law approved in its first reading by the lower house on Friday.
At present the central bank only has the right to issue recommendations which are not binding, although they are generally adhered to. According to the bill’s proponents it is to lower the risk of potential losses and protect the resilience of the financial sector.
The proposed amendment was vehemently opposed by the Civic Democrats, the Pirate Party a TOP 09, who argued that it could make housing less accessible to young people.
It is now being reviewed by the Budget Committee in the Chamber of Deputies.
Referred to as a key document, the government’s National Investment Plan has been years in the making. On Monday, the long awaited concept was finally unveiled. It counts on some CZK 8 trillion being spent by 2050 on investments in all branches of state infrastructure. The prime minister says it could help in EU funding negotiations with Brussels. However, the opposition has mocked it as a simple wish list with no clear implementation strategy.
The price of flats in the Czech Republic is overinflated by 15 to 20
percent, according to the Czech National Bank. However, the bank board has
not changed its recommendations for mortgage lending. The forecast is that
the growth in real estate prices will slow in the coming months.
According to Deloitte, the price of an apartment in the Czech Republic rose to CZK 60,700 per square meter this year. An apartment with an area of 70 meters is selling for 4.2 million on average. In the large cities, especially Prague and Brno, prices are significantly higher.
Czech households' debt to banks and credit unions rose by CZK 9.24
billion to almost CZK 1.713 trillion in August when compared with July
data, this according to statistics released by the Czech National Bank on
Monday. In year-on-year terms the rise was higher than CZK 101.9 billion.
The debt of non-financial corporations rose by CZK 16 billion compared to
July and currently amounted to 1.145 trillion crowns. In year-on-year
terms, this was a CZK 42 billion increase.
Household debt has been rising continuously since February 2016, with mortgages making up roughly three-quarters of the entire debt, according to the Czech National Bank.
The Czech National Bank re-issued 30,000 sets of six 20-crown coins on
Wednesday to mark the centenary of monetary separation from the former
The six coins featuring famous First Republic politicians such as Tomáš Garrigue Masaryk and Edvard Beneš, as well as the first central bank governors, were first issued in 2018.
At that time, collectors could exchange them for coins of the same value. Now the cost for six coins has been set at CZK 590. Another 20,000 sets of the coins are due to go on sale this autumn.