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Based on the article, I’m not sure there’s enough information to even determine if this is a deferred payment scheme (interest continues to accrue) or a postpon
by lukeqsee 7y ago
Based on the article, I’m not sure there’s enough information to even determine if this is a deferred payment scheme (interest continues to accrue) or a postponement without additional interest accrual. Certainly, if this affects you, check with the bank to determine what it actually means.
I think directly comparing US and Italian banking is quite misleading, given the relatively large differences in typical consumer protections. Maybe it’s a bum deal, or maybe it’s actually going to be very helpful for the consumer.
- woofie11 7y agoSuspending mortgages and interest is absolutely the economically right way to handle this sort of crisis. You essentially want the economy on hold for 6 months, and then to come back at the end as if nothing happened.
- wjnc 7y agoTbh suspending interest payments as well would kill already struggling Italian banks. For those countries with the appropriate finances, subsidizing this in the long run would indeed be a good way to handle this. Europe would probably allow it even though it's state subsidy of banks (unless some other mechanism is enacted). But the Italian government isn't in that sort of financial situation. I expect a future upward interest shock since the country will lose capacity driving their debt to GDP even higher.
- mrec 7y agoNo word on similar relief for renters though, which makes me a bit suspicious about their motivation.