Euribor three months below 3%

admin — Thu, 15 Jan 2009 08:36:11 +0000

The interbank rates continue to decline, reaching a value below 3%.
It is the least of the last two years and a half, but the rate decreases?
Tgfin also contains an interesting statement:
The same Lorenzo Bini Smaghi, a member of the Executive Board of the ECB, a few days ago said they believe the unjustified high spread rate of the European Central Bank.

“Banks can use the loans as collateral for refinancing with the ECB official rate. So do not justify the application of a higher spread for contracts coupled to the ECB rate. ” “In Europe – Bini Smaghi said – the credit is based on the banking system and banks are in good condition may return to financing the real economy. We must not however forget that the current crisis was caused by a phase of interest rates brought about very low levels for too long. ”
Why this waiting in the fall?
Now this is finished, but I think in 2009 we will see the improvements and will also be significant.
As for oil but the price drop down does not seem to me always equated to the speed of rise.
Perhaps my impression is only due to the fact that when you pull the strap each notch is always more painful, and to enlarge my case there.
We will see whether in practice in 2009 we have this significant decline.

Anti-Measure for the loans, unnecessary?

admin — Thu, 11 Sep 2008 15:00:05 +0000

Last month I wrote an article about the anti-crisis decree Tremonti which included the payment of interest above 4% by the state.

Now some of our readers (not only in that) I have pointed out that the measure was a useless, since the decrease in the beat Euribor.
And indeed they were right.

Euribor has dropped significantly (as expected) and a few can take advantage of the aid proposed by the government (which I remember briefly):

“The amount of installments to be paid by the borrower, the mortgage rate is not fixed to be paid during 2009 shall be calculated by reference to the greater of 4% with no spread, and other expenses, or other type of increase and the rate on the date of contract of signing the contract “

However the measure does not end for this “session” and could be the case in other situations.
But I expected to adapt the percentage (down) on this measure, which has not existed.
On the other hand was not correct in respect of borrowers with fixed rate, variable rates lead to the same level of the former.

Many are asking a question:
You really help facilitate those who wanted to risk opening a first variable rate mortgage?
There is no risk of stimulating more bank customers getting into the fire to collect the coins?
I think the decision has been made taking into account just this side of the problem, the speed of “trying” to help the borrowers most at risk.

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Euribor three months below 3%

Anti-Measure for the loans, unnecessary?