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The CGD has 18,000 home loans, to which it will have to deduct negative interest, which will involve a cost of about 100,000 euros per month, announced Friday the bank's executive chairman. "They are 18,000 credits and have an impact on their average monthly performance of six euros," said Paulo Macedo at the biannual earnings press conference.
As a result, the state-owned bank will cost about 100 thousand euros a month with new legislation that requires banks to apply negative interest on home loans, which adds a cost total of 1.2 million euros per year. Paulo Macedo also said that the bank has taken the option of deducting interest on capital outstanding.
Last week, the law stipulating that banks are required to reflect in the amounts of home equity loan agreements negative figures of the Euribor, having until July 30 to review the index calculation of the interest rate of the credits. "When the determination of the interest rate results in a negative value, this value should be reflected in the credit agreements," reads the law published on the date of the Diário da República
. Calculated must be deducted from the principal amount due from the down payment. "The law has an impact when Euribor's average negative interest rate reverses the spread (commercial margin) charged by the bank, which has an impact on very low spread credits." [19659005] Read more
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