Italian bank group slams govt rule on mortgages

Italy's top bank association on Dec 29 2000 criticised a government decision to curb interest payments on fixed rate loans as creating instability in the banking sector and consumer groups slammed it as unfair.

Prime Minister Giuliano Amato and his cabinet on Dec 28 issued a decree to curb fixed-rate repayments on previously agreed loans from January at an estimated cost to banks of between 2.5 trillion and 3.0 trillion lire ($1.2-1.4 billion).

The decree also set a maximum rate of 12.21 percen

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