Economy under pressure: KIM regulation on the test!

Economy under pressure: KIM regulation on the test!

Laimgrubengasse 10, 1060 Wien, Österreich - The discussion about the expiry of the controversial KIM regulation is picking up speed. Kurt Egger, General Secretary of the Economic Association, welcomes the recommendation to abolish these strict credit galans, which in the past have a lot of burden on residential construction and the real estate industry. "The KIM regulation has imposed disproportionate hurdles both companies and private households and slowed down important projects," explains Egger. By leaving this regulation, a more flexible and needs -based financing is promised, which is urgently needed to make the Austrian location for investments of more attractive href = "https://www.ots.at/presseausendung/ots_20241202_ots0147/wb-s-zum-auslaufen-der-kim- Ordinance-Ststerkt-and-Eigen responsibility"> OTS is reported.

The Banking Symposium Wachau recently discussed the current situation around the KIM regulation intensively. Erwin Hameseder, General Attorney of the Austrian Raiffeisenverband, pointed out the tense economic conditions, which are further difficult by high inflation and rising interest rates. The KIM Ordinance, which is in force until mid-2025 and whose effects are now evaluated by the financial market stability body, is regarded as a braking factor in the economy. According to Hateser, it is crucial that political measures are taken to boost the economy again and create perspectives for the population, as reported

Problems with lending

at a time when Austria is in a recession, HAMESEDER warns of the consequences of the strict loan gods, especially for the construction and real estate sector. He criticizes that the KIM regulation was implemented at an unfavorable time when interest rates already rose. As a result, both private and commercial investments were held back. Real estate prices have increased continuously in recent years, but the purchasing power of the population has not grown, which creates a gap in the affordability of living space. The decline in lending is not only regarded as a consequence of the KIM regulation, but also as a result of general economic developments that show all studies and analyzes, according to the expert report.