Have you bought a property in italy ? Do you have an italian property mortgage ?
Newly elected Prime Minister Silvio Berlusconi‘s first act after taking office May 8 was to pass tax cuts on property and overtime pay and offer to freeze mortgage payments for homeowners at risk of default.
The government agreed last month with ABI, the association of Italian banks, on a plan that gives first-time property owners the chance to freeze mortgage payments at 2006 levels, when the ECB’s benchmark rate was 2 percent. The new measures, which take effect Jan. 1, 2009, could affect 1.25 million families that face higher interest payments on variable-rate mortgages.
Now thats a radical step towards stopping a recession. The italian government often backdates tax changes but it the first one i’ve seen in favour of the elctorate. Applicants will recieve a lump sum payment that compensates the excess interest paid over the last two years !!!