Banks have become much stricter about issuing loans to households and corporations.
Now, to get a mortgage, a borrower must be able to cover 25 percent of the cost of the loan demanded in cash or by way of other collateral. They must also have an officially declared income that covers at least 30-35 percent of each month’s installment.
Furthermore, when it comes to the purchase of the property, the loan will refer to the actual price of the transaction and will not cover a difference between the objective value (used for tax purposes) and the market price.
Any enterprises that are likely to be unable to repay their loans will probably not get any credit at all, while loans will stop being issued to enterprises unless they concern activity that is strictly connected to the company’s sector, which entails a detailed examination of each firm’s real requirements.
Banks are also demanding additional guarantees – not needed for the approval of a loan – to grant lower interest rates.