| Loan problems less severe locally
The rate of mortgage-foreclosure filings rose 14 percent in Berks County from 2006 to 2007, according to the Berks County Prothonotary's Office. Part of the reason why the Berks rate is lower than the 75 percent increase in the rate reported nationally is because of the fiscally conservative mindset here, said Gary Yost, chief executive of the Reading-Berks Association of Realtors. For the most part, Berks lenders remained responsible throughout the housing boom, approving mortgages only to those able to repay them, he said. In turn, most buyers were careful not to purchase homes they couldn't afford, he said. Nationwide foreclosures are increasing mainly among two groups — those who borrowed more than they should have through subprime loans and those with adjustable interest rates that have risen, according to the National Association of Realtors.
Lower rates, dollar on way
While fixed-interest mortgage rates recently spiked, chief economists at the BNZ, ANZ and National Bank say fixed-interest borrowing rates will fall if the swap rate continues downwards. The overnight meltdown in global equity markets will add extra downward pressure on swap rates as central banks continue to relax monetary policy, said BNZ chief economist Tony Alexander. It also caused a tumble in the value of the New Zealand dollar, which dropped from US75.9c to US74.1c at midday yesterday. Further depreciation is expected. "If the swap rate continues to fall then fixed-interest lending rates will ease," said Cameron Bagrie, chief economist for the ANZ and National banks, spelling good news for businesses and homeowners. "This is the whole weakening of sharemarkets and extra worries out there, so these rates are coming off,"Alexander adds.
PRESS DIGEST-Indonesian Business News - Jan 28
Following are the leading business stories in the main Indonesian newspapers on Jan. 28. Reuters has not verified these stories and does not vouch for their accuracy. Telephone: Editorial: +62-21-384-6364. Fax: +62-21-344-8404 or Help Desk: +803-061-2124 (toll free). - - - - BISNIS INDONESIA - MANDIRI TARGETS 20 PERCENT LOAN GROWTH THIS YEAR Indonesia's largest lender, PT Bank Mandiri Tbk BMNR.JK, expects loan to grow by 20 percent to 25.2 trillion rupiah this year, its president director said on Sunday. - BNI TO RECEIVE $150 MILLION LOAN Indonesia's fourth largest lender, PT Bank Negara Indonesia BBNI.JK, is set to receive a $150 million loan from Standard Chartered Bank (STAN.L: Quote, Profile, Research) to refinance its debt and extend loans, an executive said.
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