Plan Approved by George Bush May Negatively Affect Activity of Creditor-Banks in Short-Term Perspective: Analyst of Antanta
Azerbaijan, Baku /corr. Trend A.Badalova / State regulation of the rates on the mortgage credits, which was offered to the US President, George Bush, may negatively affect the activity of the creditor-banks in the short-term perspective, said the analyst of Antanta Kapital investment company, Maxim Osadchi.
"State regulation of the rates on the mortgage credits may negatively affect the activity of the creditor-banks in the short-term perspective," he said.
Bush approved the plan on amendments to the conditions of payment of the mortgage credits, which are being directed towards slowing down the waves on mortgage payment. According to this plan, the borrowers who took credits from 2005 to the end of July 2007 will be suggested the frost of the rates for five years.
According to the analyst, the fixation of the mortgage rates will weaken the defaults on mortgage and will have beneficial impacts on the financial market in the near perspective. The creditor banks will suffer it in the medium-term perspective.
He explained it through the issue that the expenses of the creditor banks will be spent through predominant rates.
"If the market rates increase, these banks will fill up the passion of the financial organizations becoming bankrupt during the mortgage crisis in the USA," he said.
Bush's administration hopes that the approved plan will help many Americans. According to the information provided by the government, losing houses due to payments on mortgage threatens 500.000 Americans because in the near two years, the amount of the mortgage credits totaling $367bln will be higher due to the rate increase.