Belgium’s national bank already has such a tool to keep tabs on both mortage debt and consumer credit, as well as on the history of households defaulting on loan repayments for three months or more, MP Mars di Bartolomeo (LSAP) wrote in a parliamentary question.

Finance minister Pierre Gramegna (DP) responded on Monday said that the parliamentary systemic risk committee working group was currently examining the creation of a credit register for Luxembourg and was fleshing out the details.

The International Monetary Fund reported in its 2019 review of Luxembourg’s economy that high real estate prices had led to “high levels of household indebtedness” in Luxembourg, which could lead to problems in the case of a major economic downturn or big rise in interest rates.

In 2017 Luxembourg’s household debt to disposable income ratio reached 170%, lower than other developed northern European economies, according to credit ratings agency Moody’s.

The idea of an indebtedness tracking tool is not new in Luxembourg. Following a public consultation in 2018, corporate social responsibility network IMS Luxembourg called for better monitoring of household indebtedness to help avoid households sliding into over-indebtedness.