Europe asks for caution for the indebtedness due to the mortgages
28.03.2006
The European Commission asked that yesterday it prevents to some countries of the Euro area for the high level of mortgage indebtedness of the families, at the head of which Spain is located.
Although it does not see motive of the alarm for the economy of the 12 in his set, in his quarterly economic report, Brussels asked for caution to the countries where more it has raised the price of the housing without there having stopped grow the consumption, like Spain, France and Ireland, where the situation is more worrying.
The community Executive remembers that in case of changes in the price of the housing or in the interest rates, the most vulnerable families would reduce his consumption to balance his financial situation.
This way - the CE advises to the financial institutions to carry to extremes the prudence on having granted mortgages and suggests to check the fiscal incentives to the housing buy.
Millionaire slowness. The residents in Spain owe to the financial institutions 1.546 million euros in defaulting mortgages or of doubtful payment, what supposes 0,373 % of the entire balance for the housing acquisition, according to the information published yesterday by the Spanish Mortgage Association.
Source: 20minutos.es
Comments
Something on that to comment?
