We certainly do not look forward to the reduction of incentives for housing savings, and this is a measure that will certainly not positively affect the development of housing savings in Croatia.
This is a decision that will bring savings to the state budget in the amount of 35-40 million kuna annually, which will directly impact around 500,000 citizens who save an average of about 3,800 kuna annually in housing savings banks, said Wüstenrot housing savings bank.
They emphasize that this decision will simultaneously have a significant negative effect on the revenue side of the state budget due to the possible reduction in the operations of housing savings banks and the potential for housing loans for citizens in an already challenging market.
– We at Wüstenrot are aware of the difficult environment in which we operate and the fact that every segment of society must bear part of the burden in an attempt to consolidate public spending and the overall economy. What disappointed us is the fact that the decision was made despite the analysis of the housing savings system which clearly shows that there are dramatic differences in the operations among housing savings banks operating in the market.- they say in a statement.
Specifically, the unfavorable ratio between clients who save and clients who realize a housing loan was cited as the main reason for the state’s reduction of incentives for housing savings.
– We at Wüstenrot housing savings bank have 90% of all savings deposits placed in housing loans to citizens, we return to the budget through our operations 2.5 times more than the budget pays out in incentives to our clients, we have a share of bad loans in total of about 1%, which is 6 times lower than the market average, our housing loan users enjoy maximum protection of social standards through a fixed interest rate throughout the loan repayment period, and in our case, it is absolutely clear that the housing savings system can be efficient and very profitable for the state. Despite the reduction of incentives, we intend to continue implementing our long-term business policy and maintain our leading position in the market in the business we do best, which is solving the housing issue of citizens of the Republic of Croatia by approving housing loans with fixed interest rates.
Housing savings as a form of savings for one’s own roof over one’s head is not only a matter of managing personal finances but also a matter of general culture and the state of awareness of every serious state that cares for its citizens. Housing savings has a tradition of nearly 100 years in Germany and Austria and has already deeply rooted itself in the Czech Republic, Slovakia, and Hungary, where it is an important factor for these countries in solving the housing issue of citizens, and never in history has any housing savings bank gone bankrupt, sought any assistance or funds for rehabilitation from the state, and incentives for housing savings have never been abolished anywhere. We hope that this tradition will not be interrupted in Croatia.- they concluded.
