BANCI | ENGLISH

European commissioner Jonathan Hill: Statement at the European Parliament on Foreign Currency Loans

Trimite stirea unui prieten
Nume *
E-mail *
E-mail prieten *
Mesaj
Cod validare * Turing Number
Tastati codul din imagine (doar cifre)
195.154.184.126

Autor: Bancherul.ro
2016-05-13 12:38

Lord Hill's reply in the European Parliament on 12th May 2016 to oral Question 37/2016 on Foreign Currency Loans:

From: Othmar Karas (EPP), Burkhard Balz (EPP) and Roberto Gualtieri (S&D)

I am grateful for this opportunity to discuss foreign currency loans.

Taking out a mortgage to buy a home is the single biggest financial transaction most people make in their lives. So we need a vibrant and competitive mortgage market, one where people have choice, but also one where they know what they are buying and what risks they are taking on.

One of the products that became popular in recent years were loans made in foreign currencies. For many years they offered consumers low interest rates. But recent experience has shown they can become a problem if they're offered to households that can't protect themselves properly against sudden changes in exchange rates. Loans in Swiss francs are a good example. They were popular in countries like Croatia, Poland, Hungary and Romania. But when the Swiss National Bank stopped pegging Swiss francs to the euro in January last year, the cost of servicing them shot up.

This left households struggling to keep up with mortgage repayments, which in turn put pressure on governments to take action to help those in difficulty. Some countries have already passed laws. Others are considering doing so.

What has the Commission done? Well, for the future we have acted to ensure that risks associated with foreign currency loans are better managed by strengthening consumer protection in the Mortgage Credit Directive.

But that does not deal with the problem of existing loans in foreign currencies. Here, we're working closely with governments that are considering how best to respond. Of course, there is a need to protect the interests of consumers. But we also need to make sure that any measures taken are fully consistent with the single market and that they don’t restrict disproportionately the free movement of capital or the freedom of European companies to do business anywhere in the EU. We also have to consider the potential damage that would be done to investor confidence by undermining legal certainty.

Croatia has chosen to pass legislation that allows borrowers to convert Swiss franc loans into euro denominated loans at an exchange rate that predates the franc’s appreciation. It puts borrowers in the position they would have been in had they chosen a euro denominated loan. But it places the cost of the conversion – a cost that I understand is some 1 billion euros – almost wholly on the shoulders of the banks that issued the loans, without regard to the different circumstances of the borrowers.

We were not consulted on the draft legislation and the Croatian government was under no obligation to do so. Since its adoption, we have assessed whether Croatia’s amendments to its Consumer Credit Act and the Credit Institutions Act are compatible with the principles of the single market. So let me give you our initial analysis.

It’s clear that the goal of protecting borrowers to avoid a debt crisis can justify restrictions to the free movement of capital or the freedom of establishment. But in our view, allowing borrowers to exchange their loans from Swiss francs into euros at an artificially low exchange rate, and placing the cost almost exclusively on lenders, goes beyond what is needed to avoid a crisis and protect borrowers. There’s a problem that needs tackling, that’s clear. So we need to find a proportionate solution in line with Treaty freedoms, one that helps maintain investor confidence in Croatia.

The issue has been discussed at the ECOFIN Council. We’re monitoring the situation carefully in Croatia, but also in other countries that are considering passing legislation. We are keeping all options open including, of course, beginning an infringement procedure if necessary. We're in close contact with the Croatian government, who tell us they’re keen to find a way forward, and that they’re talking to the banks concerned to find a more balanced approach; that shares the burden of adjustment more fairly. I support that approach but clearly there must be progress soon or we will have to take appropriate action. We need a solution that strikes the right balance, that’s consistent with EU legislation, and that protects consumers, investment and the single market. That's the solution I'll continue to push for and that's what I want to see in every Member State where this is a matter of concern.

Source: Jonathan Hill announcement

Taguri: Easy Credit  Libra Internet Banking  credite online IFN-uri  Consiliul Fiscal  

Comentarii



Adauga un comentariu
Nume *:

E-mail *:
(nu se afiseaza pe site)
Subiect:
*
Comentariu:

Turing Number

Tastati codul din imagine (doar cifre)  



Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH



Erste Group CEO Bernd Spalt decides not to renew contract

A year before the upcoming renewal of his contract as CEO of Erste Group, Bernd Spalt has informed the Nomination Committee of the Supervisory Board that he has decided not to renew the contract as CEO, which runs until 30 June 2023, said the bank in a statement: This decision results from diverging views about the future strategic long-term direction of the Group. The Supervisory Board will initiate the process for succession in the relevant bodies once the Nomination Committee has been reconstituted following the upcoming Annual General Meeting (18 May detalii

First Bank launches the new cards collection

First Bank launches its new collection of cards, transformed into one of original artistic accessories, inspired by the American art. The concept is unique on the Romanian market and is aligned with the bank´s modern image. The new design is signed by Cheil Centrade and features detalii

NBR Board decisions on monetary policy

The Board of the National Bank of Romania, having convened for the meeting of 10 January 2022, decided: - to increase the monetary policy rate to 2.00 percent per annum, from 1.75 percent per annum, as of 11 January 2022; - to extend the symmetric corridor of interest rates on detalii

Reflections on 20 years of the euro: joint article by Eurogroup members

Twenty years ago tomorrow, around 300 million Europeans held a brand new currency in their hands, the euro. From Lisbon to Helsinki to Athens, citizens were able to withdraw euro banknotes in their local ATMs, buy their groceries with euro coins and travel abroad without exchanging detalii

 



 

Ultimele Comentarii