The borrower
48 min. meet––
The cost of 1 month of loan holidays for the bank and the theoretical profit for the borrower (theoretical, because the borrower does not get any money from the bank, but only postpones his payments) is easy to calculate. It is simply the amount of interest that the bank would charge during that month on the total loan value. The borrower will still have to pay back the exact same amount with the same interest – only with the entire schedule postponed by one month. And such months without profit for the bank is to be 8 in total. What is this cost compared to the huge profits of the bank on the difference in interest rates on loans and deposits, which we have observed recently !?
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