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Fates of indebted households during the Corona crisis: Survey results from Slovakia

Author

Listed:
  • Andrej Cupak

    (National Bank of Slovakia)

  • Martin Cesnak

    (National Bank of Slovakia)

  • Jan Klacso

    (National Bank of Slovakia)

  • Martin Suster

    (National Bank of Slovakia)

Abstract

A satisfactorily small share of households expects serious difficulties in resuming their debt instalments after a payment moratorium is lifted. As documented across six waves of a survey administered by the National Bank of Slovakia on indebted households, the payment moratorium programme was very important. Many households have suffered negative income or employment shocks, and the moratorium conserved household liquidity during the crisis. Loan payment deferral was used mainly at the beginning, and gradually households preferred individual agreements with their banks. The Covid-19 crisis disproportionately affected households that were highly indebted already before the crisis, working in sensitive sectors, less educated, or with large drops in income. As a result of the crisis, vulnerable households plan to keep higher financial buffers to cope with future risks, as well as better diversifying their income activities to less vulnerable sectors.

Suggested Citation

  • Andrej Cupak & Martin Cesnak & Jan Klacso & Martin Suster, 2021. "Fates of indebted households during the Corona crisis: Survey results from Slovakia," Working and Discussion Papers OP 2/2021, Research Department, National Bank of Slovakia.
  • Handle: RePEc:svk:wpaper:1077
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    References listed on IDEAS

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    Cited by:

    1. Martin Cesnak, 2023. "Decomposition of retail loan growth," Working and Discussion Papers OP 1/2023, Research Department, National Bank of Slovakia.

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    More about this item

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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