Ministers, insurers and pension funds have reached agreement on setting up a national mortgage institute, which would take over mortgages from Dutch banks, the Financieele Dagblad said on Wednesday.
The institute would take over several tens of billions of euros in mortgages, and the state would act as guarantor, the paper said, quoting sources close to the talks.
This would give banks more breathing space and allow them to attract cheaper financing. In turn, this means mortgage interest rates, now around 4.25% on a 10-year fixed mortgage, could be cut, the paper said.
Law firm Allen & Overy has told the negotiators the scheme would be ‘Brussels-proof’ and not run foul of rules on state support, the source told the paper.
The government is also looking to establish a ‘national investment institute’ to fund regional projects which would also have pension fund and insurance sector financial input,’ the source said.