Banks will have more capital available for loans from January 1

As of January 1, the risks calculated by banks for mortgage credits will drop from 50% to 35%, according to the new Basel II rules. However, four main requirements have to be met – firstly, that the exposure should be secured with a first-rank mortgage on the housing property where the owner lives or rents out, secondly, that the exposure should account for no more than 75% of the property’s value, thirdly, that the value of the real estate property does not “significantly” depend on the debtor’s credit risk, and finally, that the debtor’s credit risk depends on their capacity to repay the debt from other sources, not on their ability to exploit the property in question. In the case of the non-guaranteed retail credit, the risk will drop from 100% to 75%. This category comprises renewable credits and lines of credit, which include credit cards, overdrafts, consumer credits and leasing contracts, car credits, car leasing, student loans, as well as other credit facilities (guarantees) for small and medium-sized companies. The introduction of the new norms will allow banks to reduce provisions, thus leaving them with more money for loans.