2023-05-05 12:36:01
Baptiste Morin with AFP / Photo credit: BERTRAND GUAY / AFP
The Minister of the Economy Bruno Le Maire will meet this Friday with the Governor of the Banque de France François Villeroy de Galhau, to consider adjustments to the rate of wear and a relaxation of the rules governing real estate loans.
The European Central Bank slowed the pace of its rate hikes on Thursday but will maintain a restrictive monetary policy for as long as necessary to combat inflation that is still “too high”. The main key rates were raised by 0.25 percentage point, the seventh increase since July 2022 and the start of the unprecedented monetary tightening campaign in the euro zone.
This mechanically raises interest rates, which are now quite well over 3%. This led to a drop in the production of new housing loans by 40% in one year.
Bruno Le Maire will meet with François Villeroy de Galhau
Bruno Le Maire, who is to meet during the day with François Villeroy de Galhau, is considering relaxing the rules for granting loans by going beyond the 35% debt ratio. Possible derogations from the rules according to which banks can only lend will be mentioned on condition that the effort rate, that is to say the total amount of housing-related expenses in relation to income, does not exceed 35 %, and for a maximum of 25 years (or 27 years in the event of work prior to moving in).
“It is not a question of over-indebting everyone”
They can do so for 20% of the credits, provided that these derogations essentially concern the acquisition of a main residence and aim in a third of cases to support first-time buyers. According to Michel Barnier, spokesperson for Meilleurtaux.com, this derogation remains too limited.
“The problem is that the banks have the right to derogate but according to very strict rules. It would just be enough for them to have the right to derogate from this 35% rule, but with French people whom they choose, c “that is to say those who have a more limited risk. It is not a question of over-indebting everyone”, she explains at the microphone of Europe 1. This could allow for example rental investments which are today blocked today. Another rule which could be relaxed, the duration of the credit, of 25 years maximum today.
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