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The government wants to prevent the debt level from increasing too much. – Therefore, the requirements for banks’ lending practices should return to normal, says Finance Minister Jan Tore Sanner (H).
Published:,
The Ministry of Finance will not continue the temporary changes in the Mortgage Regulations and the Consumer Loans Regulations after the third quarter, a report emerges.
The most important change was that banks could deviate from the requirements of the regulations in 20 percent of loan cases in each quarter, but this drops again to 10 percent.
– It was important to put banks in the best possible position to help credit customers in a demanding period. We are now seeing signs of a recovery in the Norwegian economy and there is high activity in the housing market. Therefore, the requirements for banks’ lending practices should return to normal, says Finance Minister Jan Tore Sanner (H).
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Norges Bank and Finanstilsynet agree
The Finance Ministry notes that the decision follows a proposal from Finanstilsynet.
The audit noted, among other things, that with a very low interest rate level, there is a danger that house prices and household debt will rise further from an already high level.
Norges Bank and most advisory bodies have agreed with Finanstilsynet’s assessment. The ministry sent the proposal for consultation on August 28.
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– It is not an obstacle
Banks have been able to grant temporary deferrals of interest and borrower fees, without considering a new loan. Such postponements have been allowed for up to six months.
The Finance Ministry writes that in future banks should practice regulatory access to temporary exemption from payments as usual. This means that banks must make a specific assessment of whether the customer’s ability to pay has temporarily deteriorated.
– It is important that banks find good solutions for those who are still or are affected by the financial consequences of the virus outbreak. That is why I emphasize that the regulations do not prevent banks from extending the payment term in installments for those who need it, without considering a new loan, says the Minister of Finance.
The Mortgage Regulations and the Consumer Loans Regulations are temporary and expire at the end of the year. Finanstilsynet, before September 28, will advise the Ministry of Finance on the continuation and facilities from January 1, 2021. The Ministry will send the Finanstilsynet proposals for consultation when they are available.
