Sunday, August 28, 2016

Schwäbisch Hall defended terminations of existing contracts –

Given continued low interest rates keeps the Bausparkasse Schwäbisch Hall firmly to the termination of many existing contracts. “We do this for reasons of equal treatment of home savings”, chief executive Reinhard Klein told the “Welt am Sonntag”.

However, were the contracts would terminate, on average 22 years old. “It’s certainly no pleasure to terminate contracts, but you can also say:. After 15 to 20 years, a contract may also end.” Emphasized Klein

High credit interest burden on the industry

Those who reject the allocation so long, probably is not interested in taking the loan. “But that is the purpose of building savings.” Despite Klein expects that in Schwäbisch Hall new contracts with a contract sum of around 30 billion euros this year.

The high credit interest of the contracts from the 1990s are for the industry in the today’s low interest rate times a burden. The large wave of layoffs began in 2015, over 200,000 old contracts were resolved.

This year, it is expected, according to industry estimates give 60,000 terminations of existing contracts. That the number thus is likely to be significantly lower than last year, but is not due to a more lenient approach of the Institute. Rather, it is 2016 contracts in a loan would last ten years can be converted, that were ripe allotment. 2015 went the other hand, to contracts whose allocation maturity a decade or back is longer.


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