IDEAS home Printed from https://ideas.repec.org/p/svk/wpaper/1074.html
   My bibliography  Save this paper

Surveying the Impact of the Covid-19 Recession on the Financial Situation of Indebted Households

Author

Listed:
  • Andrej Cupák

    () (National Bank of Slovakia)

  • Ján Klacso

    () (National Bank of Slovakia)

  • Martin Suster

    () (National Bank of Slovakia)

Abstract

We study the situation of indebted households hit by the COVID-19-driven recession, utilizing a unique survey conducted by the National Bank of Slovakia. As many other countries, Slovakia implemented a wide moratorium on debt repayments to financial institutions. While this is an important policy stabilization tool, we need information on the prospects of the households that postponed their debt repayments. The survey shows that 9%-12% of households that took advantage of the moratorium, or any type of forbearance, expect serious difficulties with resuming payments of their debts in the beginning of 2021. We show that the households that were vulnerable already before the crisis were more likely to use the deferral, or other type of easing of credit conditions. We also show that households with steeper income drops, deteriorating DSTI, or self-employed, are more likely to be pessimistic about their debt payment prospects.

Suggested Citation

  • Andrej Cupák & Ján Klacso & Martin Suster, 2020. "Surveying the Impact of the Covid-19 Recession on the Financial Situation of Indebted Households," Working and Discussion Papers WP 6/2020, Research Department, National Bank of Slovakia.
  • Handle: RePEc:svk:wpaper:1074
    as

    Download full text from publisher

    File URL: https://www.nbs.sk/_img/Documents/PUBLIK/WP_6_2020_Cupak_etal_Surveying_Impact_Covid-19_Recession_EN.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Altavilla, Carlo & Barbiero, Francesca & Boucinha, Miguel & Burlon, Lorenzo, 2020. "The great lockdown: pandemic response policies and bank lending conditions," Working Paper Series 2465, European Central Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Markus Eller & Reiner Martin & Lukas Vashold, 2021. "CESEE’s macroprudential policy response in the wake of the COVID-19 crisis," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1/21, pages 55-69.
    2. Zaghini, Andrea, 2021. "The Covid pandemic in the market: Infected, immune and cured bonds," CFS Working Paper Series 653, Center for Financial Studies (CFS).

    More about this item

    Keywords

    financial stability; coronavirus pandemic; household credit risk; household expectations;
    All these keywords.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:svk:wpaper:1074. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: https://edirc.repec.org/data/nbsgvsk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.