The Greens want banks to have to retroactively change variable loan agreements into fixed-interest loans. This means that those who have relied on security from the start would have to pay for the unsuccessful speculation of others.
Rising interest rates are currently facing tough times for many borrowers in Austria. Although the OeNB and the supervisory authority have been warning for years that the number of variable-interest loans in this country is far too high, a disproportionate number of Austrians have relied on this type of loan when it comes to realizing their dream of owning their own home. Financing was much easier in times of zero interest rates. However, now that the tide has changed and inflation has necessitated a rapid interest rate turnaround by the ECB, this means that these borrowers will see their borrowing costs rise sharply.
In many cases this represents a significant additional financial burden. And for those who really have problems being able to repay their loans, help is definitely in order. This help can, for example, take the form of extending the term. Or by temporarily suspending capital repayments as long as interest rates remain high. In any case, the banking industry has already agreed to waive reminder fees and late payment interest and is asking all borrowers who have problems to contact their financial institution sooner rather than later.
But the proposal now coming from the Green Parliamentary Club is not a solution. The smaller government party wants to create a law that would require banks to convert variable loans taken out from 2016 into fixed-interest loans by the end of 2024. And that – and now it comes – under the usual conditions when the contract is concluded. Anyone who has speculated on permanently low interest rates, even if often not really consciously, should now be able to simply reverse this speculation. To the detriment of the bank, which normally protects itself against interest rate changes with fixed-interest loans on the financial market with products, which is now no longer possible retroactively.
If this happens, the costs will not be borne by the banks, but will – as usual – be distributed among all bank customers. This includes those who originally opted for the more expensive fixed-interest loans. They would then not only have to pay for their own security. But also retrospectively for the unsuccessful speculation of others.
2023-12-14 04:32:01
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