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Tuesday, October 3, 2023

Giorgetti: “Focus on banking initiatives for families”

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Taxes on extra profits and aid to families from banks are the main arguments of Economy Minister Giancarlo Giorgetti during question time in the Senate chamber. “When the payments are made on the extra profit, there will be positive surprises of increased income that will be made available to the most vulnerable families,” he said. Regarding the initiatives of the credit institutions, he reiterated that the government will monitor them closely and “taking into account the international context of the financial markets, will provide reduce the divergence between the increase in the interest margin on disbursed loans and that on current account proceeds, to ensure more favorable terms, I would dare say more equitable for families”.

The impact of the rate hike

The minister also talks about the effect of the interest rate increase on the housing and savings departments. “The government remains vigilant about the impact that the restrictive financing conditions have or could have – he added – on the housing market and household savings”. According to the latest available data, “to youn Mortgage lending fell by 12.8% in the fourth quarter of 2022sales fell by only 2.1%. It means less reliance on debt – Giorgetti recalled. Even house price dynamics show no signs of major concern.”

Measures mortgage renegotiation

The minister, who focused on the issue of loans for the purchase of real estate, said in response to Question Time that the government has already intervened “by reintroducing the possibility, under certain conditions, to reintroduce variable-rate mortgage loans. negotiating and converting them into cheap loans, fixed interest rate and extension of tax breaks and guarantees on first homes for young people under 36. The measures are a great success and we have to ask ourselves how we can refinance them”. Also in the driver’s spotlight is the trend of inflation – particularly in energy, food and basic necessities – and its impact on the real estate market. «The impact on the average interest rate on residential mortgages – reported the minister – in March, interest rates on new loans for the purchase of homes averaged 4.0%, while the average rate on stock of mortgages was still 2.66%”: “an average between those who receive fixed mortgage interest deductions at exceptional affordable rates and those who are hard-pressed, households and businesses, is rising during this period.

The next budget law

Giorgetti then anticipated the focus of work on the next budget bill, assuring that a careful review will take place, “taking into account the most up-to-date inflation and interest data, in the hope that by summer the increases will stop and reasonably should happen”. The goal, the minister concludes, is “ protect the development of household purchasing power».

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Source: Corriere

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