Edition:
United States

Denmark announces changes to social housing financing model


Monday, 11 Dec 2017 03:19am EST 

Dec 11 (Reuters) - DANISH HOUSING MINISTRY SAYS::IN NOVEMBER 2017 THE GOVERNMENT REACHED AN AGREEMENT WITH THE MORTGAGE BANKS ABOUT CHANGES TO THE EXISTING SOCIAL HOUSING FINANCING MODEL.THE CHANGES PERTAIN TO NEW AND EXISTING STATE SUPPORTED CONSTRUCTION LOANS AS WELL AS NEW AND EXISTING RENOVATION LOANS SUPPORTED BY LANDSBYGGEFONDEN.ADJUSTABLE-RATE MORTGAGE LOANS WITH A 10-YEAR INTEREST.FIXING PERIOD WILL BE USED TO FINANCE LOANS GRANTED UNDER THE NEW SET OF RULES .THE DANISH STATE EXPECTS TO PURCHASE NEW SOCIAL HOUSING MORTGAGE BONDS AND BONDS ISSUED BY KOMMUNEKREDIT FOR UP TO 42.5 BILLION DANISH CROWNS ($6.7 billion).IN 2018 THE STATE EXPECTS TO PURCHASE ALL THE NEW SOCIAL HOUSING MORTGAGE BONDS.BEFORE THE NEW SOCIAL HOUSING FINANCE MODEL WILL BE IMPLEMENTED IT REQUIRES AN APPROVAL OF THE FINANCE ACT OF 2018 BY A POLITICAL MAJORITY IN THE PARLIAMENT.​.THE LARGEST MORTGAGE LENDERS IN DENMARK ARE DANSKE BANK <<>>, NORDEA <<>>, NYKREDIT <<>> AND JYSKE BANK <<>>.($1 = 6.3158 Danish crowns).