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Contingent liabilities and non-performing loans in the EU Member States in 2017

Contingent liabilities and non-performing loans in the EU Member States in 2017

The most common form of contingent liabilities are government guarantees on liabilities and occasionally on assets of third parties. The highest rates of government guarantees were recorded in Finland (32.0% of GDP) and Austria (15.8%) followed by Germany (13.3%) and Luxembourg (12.2%). The lowest shares, with less than 1%, were noted in Slovakia (0.02%), the United Kingdom and Czechia (both 0.2%), Bulgaria (0.3%) and Ireland (0.5%). In most EU Member States, the central government is the biggest guarantor, except in Sweden, Denmark and Czechia, where levels of local government guarantees are higher than of central government. In several countries - Belgium, France, Hungary, Ireland, Luxembourg and Spain - a major part of the guarantees is towards financial institutions and were often granted by government in the past in the context of the financial crisis