Household debt up CZK 7.6bn in Sept

Prague, Oct 30 (CTK) - Czech household debt to banks and financial institutions grew by Kc7.6bn to Kc958.4bn in September against the previous month, the Czech National Bank (CNB) said Friday.

Year-on-year, Czech household debt rose by Kc115.9bn in September, the central bank said.

"Czech household debt cannot be regarded as low which is why slowing down its growth is desirable," Patria Finance chief economist David Marek said.

In the past five years, the volume of household debt has been growing by 31 percent on average a year but now the growth rate slowed to 13.8 percent, Marek said.

A decline in corporate loans is negative for the future development of the Czech economy as it limits the investment activity and puts a brake on the revival of the Czech economy, Marek said.

Borrowing by businesses dropped by Kc64.7bn on the year to Kc953.7bn in September. At end-August, borrowing by businesses totalled Kc956.3bn.

Debts of businesses decreased by Kc64.7bn year-on-year to Kc953.7bn in September. At end-August, debts of businesses totalled Kc956.3bn.

One-day deposits of households grew by around Kc3.6bn to Kc792.7bn in September against the previous month and year-on-year, they increased by Kc96.1bn. Deposits redeemable at notice, such as time deposits, rose by Kc94.6bn year-on-year to Kc447.4bn. Against August, they drooped by more than Kc2bn.

The growth of the M2 money supply accelerated to 4.3 percent in September from 4 percent in August

The central bank makes public the statistics as part of its monthly monetary survey, based on balances from monetary financial institutions which include the central bank, commercial banks, money-market funds and credit unions.