For the first time in ten years, the percentage of defaulting borrowers in Belgium has decreased. A closer look at the latest figures.
The Central Credit Register for Individuals (CCP) of the National Bank of Belgium (NBB) brings us good news: the number of defaulting borrowers in Belgium is decreasing. This information is particularly encouraging as statistics had been on the rise for more than 10 years.
Figures and Statistics
While there were over 370,000 in 2016, Belgians classified as “defaulting” borrowers were reduced to “only” 363,573 by the end of 2017.
Although the trend is positive, it would be inappropriate to rejoice prematurely. As mentioned earlier, figures had continuously increased from 2007 to 2016: 279,429 in 2007, surpassing 300,000 in 2009, more than 350,000 in 2014, reaching the record number of 370,701 in 2016.
It should nonetheless be highlighted that the number of defaulting borrowers decreased across the three regions (-617 between 2016 and 2017 in the Brussels region, -3,591 in the Flemish region, and -4,677 in the Walloon region) and that all types of credit were affected (whether mortgage loans, lines of credit, or installment sales and loans).
Economist Auguste Debroise commented on the matter to Trends Tendance:
“Of the 363,573 people in default, 343,488 are behind on consumer credit, 41,433 are in default on their mortgage, (…) and some people are defaulting on both”.
Encouraging Figures?
This development, as explained by the Credit and Debt Observatory, can partly be attributed to the relatively favorable economic climate currently in Belgium.
We can only hope that the trend continues in the same direction in the months and years to come…
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