The government expects banks to have a sense of responsibility in managing home loans

This Thursday, the finance minister said he expects the banks to have a sense of responsibility in the current situation and stressed that the diploma, now approved by the executive for housing loans, has received the support of the Bank of Portugal.

This position of Joao Nuno Mendes was conveyed at the end of the meeting of the Council of Ministers, which approved a decree establishing measures to control and mitigate the increase in the rate in loan agreements for the purchase or construction of permanent housing.

At the press conference, the executive member was confronted with statements recently made by BCP executive chairman Miguel Maia in which he said he hoped the government would not provide incentives to restructure home loans.

In this context, the president of BCP then pointed to the “labeling” of customers who opt for these solutions, warning that “this stigma is irrelevant when requesting a new loan.”

In the presence of journalists at the end of the press conference, the Minister of Finance replied the following: “I believe that everyone should do what he should do.”

“The government does what it is responsible for and expects banks to serve and feel responsible for the benefit of all customers and the Portuguese,” he said.

João Nuno Méndez then stressed that we are currently experiencing “a unique moment in economic history when the interest rate has risen extraordinary.”

“Although he is at a normal level, in three months he has grown a lot. And everyone, including the banking sector, we must be sensitive to this situation. Let’s face it. support of the regulator,” he stressed, referring to the Bank of Portugal.

According to the diploma approved this Thursday by the Council of Ministers, a review of home loans can be carried out when the effort rate reaches 36% or when there is an increase of five percentage points.

The Decree-Law, which will apply from its entry into force and throughout the year and 2023, regulates the negotiation process between banks and customers on loans for own and permanent housing, seeking to mitigate the impact of the increase in interest rates on the household network. income.

These details were put forward by the Minister of Finance, also emphasizing that a review should take place when the effort level exceeds 50%.

“The diploma establishes quantitative levels in terms of the size of these efforts, comparing what benefits […] home loan and net income consumer loan, and this will certainly trigger an in-depth assessment process for this client’s situation,” the Secretary of State said, so that in the event of difficulties that could jeopardize loan compliance, there is a “mandatory” process and proposal for negotiations.

According to João Nuno Mendez, among the solutions that can be used in the renegotiation of conditions are extending the term of the loan, pooling loans, implementing a new loan or reducing the rate and interest within a certain period of time. detailing that “there will be a clear condition: the interest rate cannot be increased”.