EU Avoid Housing Bubble, Interest Rate haunt Euro

EU negotiators can resolve diekspektasikan general rule first on mortgage loans on Monday, in order to attempt to avoid a repeat of the property bubble that sparked the euro zone debt crisis.
As reported analisadaily, Tuesday (03/23/2013), legislation that would force European lenders that have channeled funds worth 6.5 trillion euros ($ 8.5 trillion) foray into the mortgage market to check the credit worthiness of potential customers and their ability to pay, which effectively prohibit individual certification or loan bulging.This rule will also prohibit or those who execute mengillegalkan credit checks by banks and other lenders who associated wages mortgage amount they approve.
If an agreement is reached, the draft rules will need to be stamped by the full parliament and EU governments before entering berlakuknya period in mid-2015.Home loans are not responsible in the United States created a housing credit bubble that triggered the domestic global financial crisis.


Similar property bubbles in Ireland and Spain lead the bank must face the bad debts worth billions of euros, which forced the government to support them and seek a bailout for the eurozone.
Not only that, the rules will also be applied to avoid reckless lending in order to enhance consumer protection by making it more difficult lenders seize homes of borrowers who fail to keep up payments due.
Other elements in the regulations designed to encourage cross-border competition between mortgage providers, for example by requiring them to provide certain information in a standard way for consumers around the block.
Regulators believe that the growing competition among creditors in different countries will result in a better deal for consumers and contributes to the recovery of the euro area.
Meanwhile, the euro slipped versus the U.S. dollar after ECB President Mario Draghi signaled that if he had prepared several policy measures, including interest rate cuts, to stimulate economic growth.
Draghi see if the economic situation in the 17-nation bloc has not improved since last ECB meeting on April 4.
Previously Euro could reap positive encouragement of re-election as the president of Italy, Giorgio Napolitano, who has the potential to end the post-election political stalemate 8 weeks ago.