Poland’s cheap consumer loans are continuing to drive the economy, with PLN 77.8m in consumer loans issued by local lenders in 2014, according to the country’s credit information office (BIK). That figure is expected to grow by 5 percent this year. Poland’s consumer loans already rose 1.7 percent y-o-y in January, BIK reports.
BIK’s Sławomir Grzybek points out that as competition among local banks grows, many are looking for ways to increase lending activity. “It’s good news for the Polish economy, as it will help drive the overall consumption,” he adds.
He points out, however, that while overall consumer demand is growing strong, the local mortgage market is slowing down. The country’s mortgage market shrunk noticeably in the fourth quarter of 2014, according to BIK, with a 4.5-percent drop year-on-year posted in January.
