The pressure from the government was apparently too great, because in the debate about high interest rates on loans and low interest rates on savings, domestic banks have now presented a package of measures to support borrowers. However, some of this aid was met with fierce criticism. Consumer advocates and opposition parties see no real solution to the problem.
As reported, a “homeownership initiative” will be set up. Young families in particular should be encouraged and supported with temporary interest subsidies for real estate for their own housing needs. In addition, in certain cases default interest and reminder costs must be waived. According to Finance Minister Magnus Brunner (ÖVP), transparency about savings interest should also be increased. For this purpose, a platform is installed at the National Bank (OeNB) that bundles and publishes the conditions of the money houses. “This means that savers can easily get an overview of the offer of the various banks at any time.”
NEOS focuses on indirect labor costs
The opposition is not so optimistic. The NEOS noted that it is their right for the banks to help affected borrowers. “Because it’s not the job of politicians to dead-regulate every aspect of life, just as renters can’t use their tax dollars to take on the risk of variable-credit homeowners,” said NEOS business spokesperson Gerald Loacker. a broadcast. However, non-wage labor costs should be reduced so that the population has more money.
SPÖ demands an interest rate ceiling
SPÖ finance spokesman Jan Krainer, in turn, called for an interest ceiling in a statement so that the loans can be repaid. On the other hand, SPÖ-NÖ chairman Sven Hergovich saw the plans of the banks and the government as at least a minor success. After his demand for a three percent interest rate ceiling, the problem came up, Hergovich said in a statement from the SPÖ.
FPÖ: “Unaffordable interest rates remain unaffected”
There is nothing to be gained from the measures at the FPÖ: ‘Unaffordable loan interest remains unaffected, there is no interest ceiling, no excessive profit tax, no increase in bank tax and no end to the ‘fake profit’ tax on savings interest. ” said the broadcast of FPÖ party leader Herbert Kickl and FPÖ finance spokesman Hubert Fuchs. “So there is nothing for the savers and the borrowers beg the banks for interest on arrears and reminder fees.”
The results of the banking summit were disappointing for the Austrian Trade Union Confederation (ÖGB). “The problem of high interest rates on overdrafts was not even addressed,” ÖGB chief economist Helene Schuberth criticized in a broadcast.
Problems with foreign currency loans
Consumer advocates particularly pointed to the problems with foreign currency loans. For example, the Consumer Protection Association (VSV) called for an extension of the statute of limitations for incorrect advice from three to thirty years, for a support fund for lawsuits and a hardship fund, and for the implementation of the EU law directive for class action lawsuits to help those affected more easily. The legal protection platform Cobin Claims sees incorrect advice that is expensive for borrowers. But Cobin-Claims chairman Oliver Jaindl also sees problems with the approximately 45,000 Swiss franc maturing loans and repayment vehicles that are still outstanding: politicians must provide a moratorium here to prevent emergencies and bankruptcies.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
