2014-05-30
At the end of 2013, Lithuanian households were extended 767.2 thousand loans, the value of which was LTL 22.4 billion. The number of loans over the year increased by 1.2 per cent, their value — by 0.2 per cent. Such data was published in the Bank of Lithuania’s Survey of the Financial Situation of Households with Loans.
“We can see a clear trend: more loans are extended, even though the average value of a loan is less. The main reason for this was because residents, before taking out a loan to, for example, buy a home, save for a larger initial payment”, says Darius Kulikauskas, Senior Economist of the Macroprudential Analysis Division of the Financial Stability Department of the Bank of Lithuania.
At the end of 2013, the largest share, by size, of loans extended to households in Lithuania was consumer loans (40%). Mortgage loans that not only include loans for house purchase, but loans for other purposes using real estate as collateral, amounted to 23 per cent, financial lease — 6 per cent. The largest amount was in mortgage loans, mostly used for house purchase — LTL 20.3 billion (LTL 0.1 billion more than a year ago). Consumer loans amounted to LTL 1.1 billion (over the year they remained almost unchanged), leasing — LTL 0.2 billion (over the year they remained almost unchanged).
By the average age of adult members of a household, in 2013 the households within the group aged 30–39 were most in debt.Such households accounted for 32.7 per cent of the total of household loans, with their value accounting for 50.6 per cent of the value of total loans. These households mostly had mortgage loans: 35.5 per cent of the total of their loans, or 48.0 per cent of the total of mortgage loans.
Household expenditure on loan repayment (repayment of a loan tranche and interest) in 2013 amounted to LTL 4.6 billion.A year ago, expenditure on loan repayment was larger by LTL 0.2 billion. On average, one household with a loan had to spare LTL 765 for the discharge of its debt liabilities per month, while a year ago — LTL 64 more.
The share of income spared for loan repayment at the end of 2013 accounted for 31 per cent.A year ago, households spared 2 percentage points more of their income for loan repayment. The major share of income to be spared for the repayment of a loan by households with a mortgage loan — 36 per cent. The smallest share is spared for loan repayment by households with lease liabilities — 8.6 per cent.
The Survey (640.4 KB download icon) of the Financial Situation of Households with loans is published on the Bank of Lithuania’s website.