Press Release of the Association of Czech Building and Loan Societies regarding 2003 Preliminary Results of the Sector of Saving with Building and Loan Societies

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As expected, a record number of contracts on saving with building and loan societies were concluded in 2003. The first estimations indicate that in December, the total of 811,599 contracts were concluded by all building and loan societies, including increases. It means, that 2.485 million contracts were concluded in 2003, including increases. These figures document the fact that saving with building and loan societies is very popular and the Czech public trusts this system of saving.

While the posted figures are the highest ever, they should not be much surprising. Experts generally expected record figures in 2003, especially during the last months of the year, in connection with an amendment to the respective act. Also, the interest in loans was also record-breaking in 2003. The dynamics of development of financing through saving with building and loan societies in 2003 represent good news for the housing market in the Czech Republic.

The number of 131,000 loans provided in 2002, was exceeded already in October of 2003. As concerns volumes, more than CZK 30 billion were provided in the form of loans by the end of November. The final 2002 figure amounted to CZK 22 billion. Considering the situation on the real-estate market and the level of interest rates, we can expect the pace of growth in the number of loans to be even higher in the coming period.

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