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World Jewish News
Israeli Lack Money to Pay Mortgage
26.12.2008
Israeli debt to mortgage banks grew by 8,7% in 2008, and reached a sum of 200 milliard shekels. At the same time, a lull in the real estate market caused a 42% decrease in the issuing of morgtage.
According to the press-service of the Bank of Israel, thousands of families are having difficulties in repaying the mashkanta. The total sum not repayed to the banks is 3,4 milliard shekels.
Among other incorrigible defaulters are building companies, whose accumulated debt is 1,2 milliard shekels.
The Bank of Israel is expecting an increase in mortgage debtors, as an indirect result of prognosed financial troubles and growing unemployment. The commercial banks do not yet have any real idea of how to combat this problem. One of the propositions is to introduce state warranties on given loans, and to create special programs for those who are having trouble replaying their mortgage.
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