Real estate credit: the Banque de France does not want to "push the French into over-indebtedness"

Bruno Le Maire must meet during the day with Mr. Villeroy de Galhau, at a time when the rise in interest rates is weighing on the real estate market by restricting the conditions for access to credit.

Possible derogations from the rules according to which banks can only lend will be mentioned on condition that the effort rate, that is to say the total amount of housing-related expenses in relation to income, does not exceed 35 %, and for a maximum of 25 years (or 27 years in the event of work prior to moving in).

They can do so for 20% of the credits, provided that these derogations essentially concern the acquisition of a main residence and aim in a third of cases to support first-time buyers.

“Everything in its time” reacted the governor on Friday at the microphone of Radio Classique, recalling that the decision belonged to the High Council for Financial Stability (HCSF) which meets in June.

"There is one thing certain, it is that we are not going to push the French into over-indebtedness, because the real social crisis would be there", he continued.

On the usury rate, a maximum rate intended to protect borrowers but accused of preventing banks from lending, the governor affirmed that "this is what explains why the mortgage rate is lower in France" than among the neighbours, without commenting on a more permanent change in the rules.

The attrition rate has been relaxed, recalculated monthly instead of once per quarter. But Bruno Le Maire said that the authorities were going to "study the possibility of extending this system", supposed to end in July.

On Livret A, the governor also said that he would make a recommendation to the minister in July on the rate of remuneration, taking into account “the interests of savers and borrowers”.

Wednesday on France Info, Mr. Le Maire had affirmed that his “first responsibility is to protect the savings of the French”, suggesting the wish to see this rate increase.

The Governor of the Banque de France and the Minister of the Economy have the possibility of derogating from the calculation rule, determined by taking into account the rise in prices and interbank rates, at which banks exchange money at short term.