How does foreign currency debt relief affect households’ loan demand? Evidence from the OeNB Euro Survey in CESEE
Focus on European Economic Integration, 2017, issue 1, 8–32
Many Central, Eastern and Southeastern European (CESEE) countries have implemented or are discussing measures to alleviate the debt burden of households with foreign currency loans, in particular Swiss franc loans, such as converting these loans at historical exchange rates. This paper presents evidence from the OeNB Euro Survey indicating whether households are aware of government efforts to help borrowers and shows that awareness of current government measures is positively and significantly correlated with expectations of future government action for debt relief. We find that expectations of debt relief have no effect on loan demand in general but positively and significantly increase demand for foreign currency loans.
Keywords: usehold borrowing; debt relief; moral hazard; foreign currency loans; emerging economies (search for similar items in EconPapers)
JEL-codes: G18 D12 D84 F34 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
https://www.oenb.at/dam/jcr:121e6d2f-1b21-474d-bbd ... studies_beckmann.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:onb:oenbfi:y:2017:i:1:b:1
Ordering information: This journal article can be ordered from
Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria
Access Statistics for this article
Focus on European Economic Integration is currently edited by Doris Ritzberger-Gruenwald and Helene Schuberth
More articles in Focus on European Economic Integration from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Markus Eller ().