Bank loans rise 50% over a year and are set to grow further

Since the end of March 2007 the level of loans granted to individuals and institutions shot up by 50% to zł.129 billion, according to the Polish Banks Association (ZBP).

In Q1 clients took out loans worth zł.14 billion, which is 6% more than in the corresponding period of the preceding year, while the institution expects that the value of mortgage loans will increase another zł.68 billion this year.

Credits denominated in foreign currencies increased their share of the market to 59% from 43% in Q1 2007. Despite the credit boom, banks polled by ZBP and Pentor in May did not confirm that the share of sub prime loans is increasing as this was observed by only 14% of bank branches. (Parkiet, p. 12) M.M.