While lending or borrowing in foreign currencies was very popular in Austria for a long time and there was great demand for the Lite lender loan, for example, there has been a ban on issuing new loans in foreign currencies since 2008.
Since then, almost 3/4 of the outstanding foreign currency loans in Austria have been repaid. The foreign currency loans were mainly used in the area of extensive financing for house building or real estate loans.
Less foreign currency loans & further reduction
The current figures from the third quarter of 2019 in the area of foreign currencies show that loans with a volume of USD 470 million could be reduced again.
- Ban since 2008: In addition to borrowing in Lite lender and USD loan, the ban also applies to other foreign currencies. The credit volume that is still outstanding was reduced by 73.6%, as the FMA in Austria announced in a report on Friday.
Households: Open foreign currency loans of $ 13.78 billion
- The outstanding loans with private households in Austria which run in foreign currencies amount to 8.7% of the open loan volume in the area of foreign currency loans.
- For the borrowers, the appreciation of the Lite lender has given them an expensive awakening, and the amount of the repayment has risen sharply. The interest on the foreign currency loan is not yet included in the calculation.
I am repaying a foreign currency loan – what should I do?
If a short-term loan repayment is not possible, depending on your personal situation, bank and outstanding loan amount and term, you can convert the foreign currency loan into a USD loan.
The best way to obtain current information on costs and processing is to contact your credit partner directly for your previous foreign currency loan. Get free advice.