Regulatory Alerts2019-06-27
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Recommendation on medium-term vulnerabilities in the residential real estate sector in Belgium
The European Systemic Risk Board recommends that Belgian national authorities activate legally binding borrower-based measures, such as limits on loan-to-value, debt-to-income, or debt-service-to-income ratios, to address vulnerabilities in new mortgage lending. These measures aim to prevent a significant share of borrowers from being unable to service debt or maintain consumption following adverse economic conditions or residential real estate market developments. Belgian authorities must report on actions taken or justify inaction to the ESRB and the Council by 31 October 2020, with annual reports required until 31 October 2022.
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