Austrian Banks Prepare to Support Those Who Make Mortgage Payments

Austrian banks are taking steps to address the concerns raised by households struggling to meet their mortgage repayments amidst the backdrop of surging interest rates. The banks, led by Erste Group Bank AG, are preparing to introduce collaborative measures aimed at aiding borrowers dealing with variable-rate mortgages.

In a statement on LinkedIn, Willi Cernko, the CEO of Erste Group Bank AG and head of the Austrian Chamber of Commerce industry group, expressed that Austrian banks are committed to making concessions to assist borrowers facing individual financial stress due to variable-rate credit. He noted that a significant portion of loans already benefit from fixed-rate protections.

This development, which Cernko says he will share the plans for in the coming days, comes as Austrian politicians join a chorus of European lawmakers criticizing banks for elevating borrowing costs while maintaining low savings rates. 

Italy’s recent unexpected proposal for a tax on bank windfall profits has further fueled the discourse.

A report from Bloomberg notes that the country’s opposition lawmakers have demanded various measures to support households, including a potential special bank tax, limitations on loan interest rates, and incentives for higher deposit rates. Austria’s Minister for Social Affairs, Johannes Rauch, has also instigated a class-action inquiry, led by the VKI consumer protection agency, to assess whether banks’ low deposit rates are unjust.

Cernko underscored that the banks’ actions are aligned with long-standing European Central Bank directives aimed at bolstering profitability and fortifying capital reserves for future economic challenges. He cautioned against rash measures that could destabilize the banking industry and hinder Austria’s investment climate.


Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Gold’s Wild Bull Run: Are Markets About to Break? | Mike McGlone

First Majestic Silver: The Santa Elena Mine

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Russia Stops Gas Flow to Austria in Payment Dispute

Russia’s Gazprom halted natural gas supplies to Austria on Saturday in a payment dispute, marking...

Monday, November 18, 2024, 02:09:00 PM

Far-Right FPO Wins Austrian Election, Falls Short of Governing Majority

Austria’s far-right Freedom Party (FPO) has won in the recent national elections, securing 28.8% of...

Monday, September 30, 2024, 01:37:00 PM

OMV Terminates Long-Term Russian Gas Supply Agreement

Austrian energy company OMV has announced the immediate termination of its long-term natural gas supply...

Friday, December 13, 2024, 12:02:00 PM