Foreign Currency Loans and Loan Arrears of Households in Central and Eastern Europe

摘要: Given recent adverse developments, widespread foreign currency borrowing in CEECs poses a serious challenge for financial stability. Against this background, we use survey data to study the determinants of loan arrears private households. Our confirm non-negligible impact loans on vulnerability. However, higher delinquency rates depreciation countries can only partly be explained by borrowing. Employing information about reasons households’ difficulties, show that income shocks exert stronger than direct effect which works through increased installments loans.