According to reports leaked on Wednesday 8 Cheshvan 5773, the Bank of Israel is formulating new mortgage regulations due to the increase in the total household debt in 2011, seeking to act before Israel finds itself facing a mortgage crisis similar to the United States.

Globe’s report “households’ mortgage debt totaled 272 billion NIS at the end of August 2012, after increasing by 1.2% during the month, and increasing by 5.4%, or 13.8 million NIS from the beginning of the year.” This has economists concerned and it appears Bank of Israel Governor Stanley Fischer is not going to take a ‘sit and wait’ approach, but the bank is being proactive and trying to head off mortgage collapse.

“Total household debt was 381 billion NIS at the end of August, after increasing by 0.8% during the month, and by 4.6%, or 16.6 billion NIS from the beginning of the year. 71.3% of household debt is mortgage debt” Globe’s adds, and it appears that while askanim are working tenaciously to move ahead in the new chareidi city of Charish, avreichim seeking to obtain mortgages may find they no longer qualify. Details of the new mortgage regulations have not yet been announced.

What is certain however is, that if avreichim no longer qualify for state mortgages, chareidi MKs in the next administration will have to work hard to create a new system that will permit young couples to acquire a subsidized apartment.

(YWN – Israel Desk, Jerusalem)