8 April 2021 - 7 min Reading time
Since the peak in August 2020, the total number of outstanding payment deferrals for mortgage loans has fallen sharply: from 124,000 last summer to 13,383 at the end of March this year. During the month of March this number increased slightly compared to January (12 467) and February (12 017). The total underlying amount (1.6 billion euros) and the average outstanding amount (117,000 euros) of the deferred credit follow the same evolution: a virtual decimation compared to this summer - when the underlying amount was 13.1 billion euros - and a slight increase in the month of March.
This can be explained by the end of the period for requesting payment deferment under the conditions of the Second Charter. This ended on March 31, 2021. Private individuals who still met the initial conditions could request an extension of their payment deferment from their bank until the end of March.
This does not mean that there are no other options in the event of financial problems due to the corona measures. Additional payment deferral for a mortgage loan may still be possible, but the bank can also propose other tailor-made solutions. That is why Febelfin once again calls on you to contact the bank in a timely manner to look for a solution tailored to your personal situation.
Febelfin also has its own contact point for general information or any questions regarding the bank's response.
During the months of February and March 2021, it was possible to request payment deferral of consumer loans. Very limited use has been made of this. At the end of March, the total number of outstanding payment deferrals amounted to 1,270, for a total underlying amount of 27.3 million euros. For comparison: in September the counter stood at 7,537 for a total amount of 157.6 million euros. The average amount of credit for which a deferral has been granted is 21,500 euros. From April 1, 2021, it is no longer possible to request a deferment for a consumer credit.
The banks continue to grant payment deferrals for loans to companies. All healthy, viable companies that have already received a 9-month deferment of payment can still apply for a deferral of repayment until June 30, 2021. In this way, their liquidity needs as a result of the corona crisis can be partly met.
The total number of outstanding payment deferrals at the end of March was slightly more than the previous month: 28 474 in March compared to 27 141 at the end of February. At the peak of last year - in September 2020 - this number was 141,000. The total underlying amount was then 24.3 billion euros, now the counter stands at 5.7 billion. 200,000 euros is the average outstanding amount per credit granted.
Together with the NBB and the financial sector, the government has developed state guarantee schemes for new loans. The second guarantee scheme can be used for loans to SMEs, with a term of more than one year to a maximum of 5 years. The financial sector is positive about this and brings these loans to the attention of entrepreneurs who are looking for financing.
The first scheme expired at the beginning of 2021. The granting of credits under the second scheme is steadily increasing: at the end of January, 272 million euros of credits under the second state guarantee scheme were used. Two months later this already stands at 338 million euros. All in all, this is limited, but use is on the rise. We also expect this increase to continue in the future. The average credit granted per application is 103,000 euros.
If the support measures are reduced and companies restart or start to generate more turnover again, we expect that companies will again have greater need for new credits, which can be guaranteed with this second state guarantee scheme.
In addition, the credits granted under the first state guarantee scheme will mature, part of which can be refinanced via the second state guarantee scheme.
The number of business loans granted remains stable. New credit was granted to 1,478 large companies in February 2021. This is consistent with what we saw in March 2020, when the number was 1,576. The underlying amount is also virtually the same: 1.86 billion euros in March 2020 compared to 1.71 billion euros in February 2021.
When it comes to the number of SMEs - including self-employed people - we see the same evolution. With the exception of a few outliers from last year (March, June and December), the number and underlying amount are also in the same line here: 19,729 companies received a loan in February 2021, for a total underlying value of 1.95 billion euros. This shows that, despite the difficult economic period, the banks continue to play their social role and continue to provide loans to companies.
Since the outbreak of the corona crisis, merchants and banks have become aware of the need to pay digitally as much as possible. Paying by card and smartphone is therefore an extremely safe and hygienic way to pay for purchases, especially if it is done contactless. The Belgian adjusted his payment behavior accordingly and seems to continue this new digital habit.
Graphs shows that Belgians have taken out their cards more often during the month of February than in the previous weeks, and that significantly less cash is still being withdrawn.
The rising trend in contactless payments remains undeniable: almost half (49%) of all card payments are made contactless. That is an increase of 7 percentage points since December and a threefold increase since February 2020 (16%).
Febelfin calls on everyone to continue paying digitally (via card and smartphone) as much as possible. A digital - and certainly contactless - payment is the most hygienic and safest way to pay.