applications from this sector of industry.
Against this background, we cannot but
deprecate the action of the Ministry of
Economic Affairs in tightening up its rules for
acceptance, thus reducing the opportunities for
new businesses to obtain loans.
In recent years the Nederlandsche Crediet-
verzekering Maatschappij (NCM) has also
introduced more stringent credit insurance
requirements, with the result that guarantees in
respect of exports to a substantial number of
countries have either been limited or suspended
altogether. The volume of exports bearing an
NCM guarantee has accordingly fallen, and a
number of exporters are looking for alternative
sources of credit insurance in the private sector.
It is to be hoped that the Government's
contribution to the Baker Plan will lead to an
increase in the volume of export finance, so that
the positions built up by Dutch industry in
foreign markets will not be lost.
In contrast to the business sector, the growth of
demand for credit from family households was
very limited. Nevertheless, 1985 as a whole can
be described as a good year because the demand
both for home loans and for consumer loans
showed a slight recovery in the course of the
year.
Home loans, net of redemptions, rose to Fl. 9.3
billion, the greater part of the increase coming in
the second half of the year. This is the more
encouraging by reason of the fact that the
rise coincided with a period which was often
marked by fierce competition and in which the
market for, and average prices of, owner-
occupied dwellings were virtually stagnant.
Among the principal factors which led to the
improvement were more intensive efforts to
attract estate agents and buyers of new houses,
and the introduction in October of ten- and
fifteen-year fixed interest mortgage schemes. The
latter fit in extremely well with the desire on the
part of house buyers, at a time of relatively low
mortgage interest, for long-term, fixed-interest
contracts. This, of course, implies that demand
for mortgages with a variable rate of interest was
limited. The ABN Plus Mortgage, which was
only introduced in 1984 but is already copied by
our competitors, came up to expectations.
We are gratified to be able to report that the
decline in mortgage arrears, which commenced
in 1984, continued throughout the year under
review. The number of doubtful accounts
disposed of fell also, although losses were of the
same magnitude as in the previous year.
Demand for consumer loans recovered after
several years of stability or actual decline, the
overall market displaying modest growth. The
reversal is clearly a product of the upturn in the
economy and rising confidence among
consumers. The high level of car sales was of
particular importance, because it was
immediately reflected in growth of consumer
credit.
jL!NF
