Draghi blasts government’s repossession plan and warns mortgage rates could rise
● ECB chief says moral hazard must be prevented on home repossessions ● New bill has cabinet approval but now faces serious opposition
The European Central Bank has warned that efforts to protect borrowers in arrears from repossession could push up mortgage rates and lead to moral hazard.
The ECB has also warned that the proposed legislation to allow the courts a say on home repossession could lead to unnecessarily high levels of bad loans clogging up the financial system and undermine banks’ ability to lend.
The opinion was delivered by ECB president Mario Draghi to ...
