CIU calls without extending the repayment term cost of mortgages

CiU presented at the next session of a battery of proposals to alleviate the effects of rises in interest rates in household consumption, such as that users can expand without cost repayment terms of their mortgage or extend the terms of such a consumer credit.

The goal is that the price rises of money to come not diminish the consumption of families, one of the engines of the Spanish economy, "said the spokesman for the Economy of the parliamentary group of CiU, Josep Sanchez Llibre, who also advanced that arise "An emergency plan" to control inflation, in his view, the great unfinished business of government.

The main indicator for setting the price of mortgages, the Euribor, rose in July to 3539%, while yesterday remained at 3608%, a level at which not moved since 2002.

At the beginning of the month, the European Central Bank (ECB) placed the official rate in the euro zone at 3% after a quarter-point increase, a rise that analysts believe that will not be the last year, which could end up in 3.5%.

"Interest rates do not affect industrial activity, where there is room enough to be able to absorb increases, but it can very adversely affect household consumption, given the high level of indebtedness that have their economies, mainly for housing," he said Sanchez Llibre.

He explained that, therefore, his group will raise a bill to reform "in depth" the mortgage market in the sense that the mortgages' can have the maximum flexibility ".

Thus, they suggest that users can increase cost without repayment terms of their mortgage loans to maintain the level of fees' in the same levels as at present. "

Another of the measures to include in his parliamentary initiative is that interest rates that apply to mortgages can be extended, "in some cases, a consumer credit to be asking, for example, to buy a car.

Control inflation

The MP stressed that the main reason that drives the ECB to raise rates is inflation. He pointed out that to amend the situation, bring into focus a battery of parliamentary initiatives for the development of an "emergency plan" to pursue the Spanish inflation will fall within the limits set by the ECB, which is currently at 2% .

The solutions are delivered by the determined support to the industry, the technology sector and telecommunications services and high value-added measures, he said, would serve to increase productivity and lower inflation. EFE

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Written by Carlos Lopez on August 24, 2006 with 0 comments.