Housing Minister Uri Ariel, first introduced the concept of the conference Hclclit-laomit

Money
Niv Horesh and Ziv Koren
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At the beginning of next month will launch a campaign to recycle the aggression scale the Ministry of Housing mortgages granted by the state 126 thousand eligible. Ministry of Finance does not like the idea approved by the Supervisor of Banks Although this step may produce a disposable income of NIS 4 billion to the state coffers
The Ministry of Construction and Housing is currently pushing to start recycling campaign mortgages granted by the state eligibles. Calcalist "has learned that in recent days being negotiated between the Ministry the aggression scale of Housing, Ministry of Finance, the Bank of Israel and various banks of the destination conceived by the Ministry of Housing - Income of NIS 4 billion in the coming year as a result of receiving mortgage recycling all citizens at state expense. The Bank of Israel recently the aggression scale finished formulating the guideline for banks, which is expected to come into force already on 1 October.
Read more Calcalist: "A young couple sitting the aggression scale on the fence until now, would have to pay more on your mortgage" stagnation in real estate: a 14% increase in new mortgages in August Ariel: "Recycling for mortgage would bring 4 billion"
Housing Minister Uri Ariel, first introduced the concept of the conference Hclclit-laomit "Kalkalist" earlier this month and said it could be "modest contribution of the Ministry of Housing to the state budget in 2015". Housing Ministry plan to identify those entitled to reach them via direct the aggression scale mail.
The letter reads those entitled to come and refinance your mortgage will also include explanations about the consequences of recycling it, because it takes place and go entitled to the state and must go to the bank. For example, in the event that borrowers repayment the aggression scale difficulties they will have to deal with the bank's collection mechanisms rather than against those of the state.
Calcalist "has learned that according to the emerging, are entitled to be addressed recycling mortgage the aggression scale banks will not be able to change the repayment period of the loan, but only be able to" update the aggression scale "the interest rates that they pay on the mortgage. It is designed to simplify the process for those borrowers and prevent load banks, as part of the preparations for the campaign to overcome their extremities.
Until 2012 was mortgage interest beneficiaries 4% or more. Because of the low interest rate environment, the average interest rate on loans under similar the aggression scale conditions in the banking system was lower. By comparison, in July 2014 the market interest was 2.2%. This created an absurd situation that it was entitled, often disadvantaged, who received a mortgage from state funds in recent years have paid a higher interest rate market.
According to the Ministry of Housing test, the saver average monthly savings the aggression scale would be 82 per month or 984 per year. According to data came Calcalist "Today there are 126 thousand the aggression scale are entitled to keep them to the Recycle Bin, and stated that the Ministry assess if a quarter of them will make recycling - can raise revenue by 4 billion.
Banks do not feel a slowdown in demand for new mortgages mortgages is expected to rise in September estimated the volume of mortgages in the banking system is expected to be up to 4 billion, which reflects an increase of 5% -13% compared to September last year Tomer Ron Full Story
The firm establishes criteria under which certain sections of the population can apply for a mortgage under known conditions of the country. Eligible are young couples, among other things, that disadvantaged apartment in their name, new immigrants or special populations (eg Ethiopian). Another important parameter scoring system requirement is location of the property in priority areas in terms of nationality.
According to the Bank of Israel, the balance of mortgages granted in the arrangement with the country in July 2014 was 21 billion, of which NIS 18.9 billion budget defined the aggression scale repayment mortgage. If the loans are lower, which means that such payments are made where a certain date set for the bank loans are relevant for 16 billion.
Another thing that brings economic feasibility of the story is that as part of the agreement between the state banks at the time determined that these mortgages will benefit from the recycling without early repayment charges. Also today, the State pays fees to the banks and collection operations. The annual budget allocated by the State for the benefit of the story is about 175 million. While the amount itself varies the aggression scale from year to year (in 2013 the amount was 163 million) and in the short term due to recycling is cost, but in the event that a quarter of those eligible will approach to recycling - in the long term quarter of this yearly will be spared as well.
Treasury are not enthusiastic about the campaign promoted by the Minister Ariel, which is probably because the state fund currently enjoys a result of revenue streams mortgage the aggression scale with a higher interest rate than market. State Fund for the meaning of the campaign is receiving a large amount of disposable income flow over relatively fixed. the aggression scale Treasury refused to elaborate and said that "the issue is being discussed in the various divisions and with the Commissioner of Banks".
Not so clear how the new campaign stands the aggression scale to support the aim of the Bank of Israel to cool the mortgage portfolio of banks. Only a few days ago brought the aggression scale the Supervisor of Banks David Zaken on the banking system the aggression scale a new restriction on mortgages that make banks providing mortgage for more liquor. Beard said he was concerned by the fact that banks' credit portfolio has been grabbing a share of 31% of the total bank credit, compared with a share of 20% in 2007.
Payables turnover could make so far independently and without initiative being formulated. Bank of Israel realized the aggression scale that horses already escaped the aggression scale the barn and thus indicate that there is not a step that goes against the new restrictions, but the goal of integration during it will be the most convenient way to banks and customers.
In the banking system were complaints that the right hand is acting in contravention to the left arm in the same week. This is because if the new campaign successful, it will take billions from the state to the banks' balance sheets. "A welcome and necessary step," a source in the banking system. "But the aggression scale is not clear how this fits in with what we've the aggression scale heard