In some countries, repayment of at least some principal is required on all housing loans for the entire life of the loan. In other countries, interest-only loans are available only if the borrower has already contributed a fair degree of equity. So this is one area where Australia stands out. We are not unique in this area, but we are unusual.
This brings us to the second important point. Conditions for borrowing of government and banks on international markets and credit conditions for business and households have improved significantly. We could observe something similar in Croatia in previous years. These favourable developments also bring risks.