The Czech National Bank has forbidden Sberbank from financing real estate development. The Czech branch of the Russian bank reportedly failed to adhere to precaution rules. Property financing in the Czech Republic is among the cheapest in the CE region, according to an analysis by BNP Paribas Real Estate. Not only do banks offer loans with interest rates below 2 percent, but investors push for longer amortization periods, which are considered more important than lowering interest rates, according to KPMG’s Property Lending Barometer 2016. Approximately 95 percent of loans on the Czech market are being paid back without problems, similarly as in Sweden, Germany and the UK.
