US President has offered a medicine for hypothec crisis
7 December 2007The government of the USA has decided to struggle with crisis by administrative measures. Last night Georges Bush had to represent the plan facilitating service of credits to borrowers, whom eviction from the house for non-payments threatens. This report has been prepared by US Finance Minister with Citi, Wells Fargo and Washington Mutual’s top-managers participation.
According to the plan creditors will voluntary freeze risking credits with the floating rate, taken in 2005 - July, 2007 for five years. Within the first three years the rate of these credits made 7-9 % annually, and then should increase up to 11-13 %.
According to US government, in 2008 the rate will grow on 1,8 million credits and up to 500 thousand families risk to lose their homes.
Diligent borrowers act and those, who hopes to get the house after falling the prices, are acting against the plan,.
Only those, whose difference between cost of the house and debts does not exceed 3 % can hope for assistance. They should not have 60-day’s delay and prove that, they are not to pay under the raised rate and will continue to pay an old one.
Banks and investing funds have already written off $60 billion. According to experts, loss from crisis will exceed $300 billion and it will “take away” 1 percentage item of US GNP’s growth in 2008. According to Moody’s report, recession in the real estate market will be prolonged till 2009; reduction of prices will exceed 15 %.
