For the moment, nothing serious, the «ratio debt / assets remains very low (36%)», since the value of real estate continues to grow. After the European warnings of 2016, the Minister of Finance, Pierre Gramegna, tabled at the end of December a bill that entrusts the Commission for Supervision of the Financial Sector (CSSF) to set the conditions for granting mortgages to use in Luxembourg.
The CSSF may define five maximum limits:
the ratio of the sum of all loans to the value of the property,
the ratio of the sum of all loans to the annual disposable income,
the ratio of indebtedness at the time of purchase to the annual disposable income,
the ratio of total annual borrowing costs to annual disposable income
or finally the original maturity of the loan.
That the CSSF has this possibility does not mean that it will actually do so in the face of provident banks. But that will reassure the European authorities. This is not the first time that the Luxembourg regulator is seized of this issue: in December 2012, he had already in a circular invited banks to adhere to a number of guidelines
Kenya: IMF maintains $ 1.5 billion of stand-by credits for another six months
The IMF has extended a six-month extension for $ 1.5 billion in stand-by credits to Kenya. A program that was frozen last June, but which will finally be maintained until next September.
The International Monetary Fund has just sent a favorable response to Nairobi’s request to extend the confirmation agreement by six months, the deadline for which was set for the end of March. This renewal also means the maintenance of stand-by credits approved in March 2016, which amounted to $ 989.8 million, in addition to a credit facility of approximately $ 494.9 million.
Maintenance against reforms
«On March 12, 2018, the IMF’s Executive Board approved the Kenyan authorities’ request for a six-month extension of the country’s Stand-By Arrangement to allow more time to complete the ongoing reviews,» he said. the IMF in a statement. This announcement should reassure Nairobi, after the Fund recently declared that stand-by credit facilities could not be extended beyond 24 months.
A stay was granted in Nairobi on the sole condition that the examinations be completed by September, which would allow the Kenyan authorities to access the funds available in the confirmation agreement. «In support of this request, the authorities are committed to adopting policies that will enable them to achieve the objectives of the program, including reducing the budget deficit and significantly modifying the interest controls,» the report states. side of the IMF.
A program frozen last June