In Israel, the volume of frozen loans has seen a significant decrease since January 2024. Specifically, in February, the volume dropped to 63 billion shekels, and in March it further decreased to 54.6 billion shekels. This means that 45% of previously frozen loans have been resumed due to payments by Israelis.
It is worth noting that most of the loans for which payments were resumed are commercial loans. However, there are still 39.3 billion shekels worth of mortgages that remain frozen, accounting for just 6.7% of total mortgage loans in Israel. Additionally, there are still 2.7 billion shekels worth of consumer loans and 7.3 billion shekels worth of small business commercial loans that are still frozen.
The loan freeze program has been extended twice and is currently in effect until June. The data presented provides insight into the fluctuation of frozen loans in Israel, giving us a better understanding of how the pandemic has affected borrowing habits and financial stability in the country.
