The latest data released by the Local Development Ministry shows that mortgage lending in Czech Republic declined by one third in the first half of 2009.

The volume of mortgages dropped to CZK39.7 billion and the number of mortgages decreased to 23,602 in the first six months. Both figures represent 30% drop on yearly basis.

According to the estimates, if Czech mortgage lending would continue decline in the second half of 2009, the volume of newly granted mortgages this year would be around level achieved in 2005.