With some of the Eurozone falling into negative interest rate territory we keep hearing about how savers will have to pay the banks for them to keep their money safe. But what about borrowers? How do negative interest rates affect exisiting borrowings? Normally there would be a 'zero' floor policy in place but it turns out that some of the euro banks never even factored the possibility of negative rates and are now in a position where they have to pay borrowers for the money they lent them.
Yes, an interest free mortgage and the bank pays a part of your borrowed principle every month! Interesting and strange times indeed. A lot more in this article:
http://www.wsj.com/articles/as-inte...ve-banks-may-have-to-pay-borrowers-1428939338
Yes, an interest free mortgage and the bank pays a part of your borrowed principle every month! Interesting and strange times indeed. A lot more in this article:
http://www.wsj.com/articles/as-inte...ve-banks-may-have-to-pay-borrowers-1428939338