Insurance News Archive

Central European mortgage markets 'developing'

Bank for Reconstruction and Development (EBRD).

According to the report, some countries have removed legal obstacles in the way of reforms to make the mortgage markets more efficient and have made practical changes to benefit lenders and borrowers.

Analysis of 17 countries in the area reveals that the region is taking steps to facilitate transactions by computerising all land registers and property titles.

While not widespread, the report also notes that in some countries, mortgage registration is speedy and cheap.

The report also claims that enforcement of mortgages is also relatively efficient, though it notes that the markets have not been tested by a downturn.

Emmanuel Maurice, EBRD general counsel, said: "Mortgage markets may appear hugely complex, but the legal basics for mortgages are in all models fairly similar and quite simple when one is able to separate the essential ingredients from those that are country-specific or simply inherited by way of tradition."

11 Jan 2008