Following the recent storms across large parts of Austria, a large number of owners of houses and flats have suffered massive flood and storm damage. Restoring habitability of affected properties, will be an enormous task for the entire country in the coming months. In light of this situation, the Austrian Financial Market Authority (FMA) advises that loans taken out for renovations following natural catastrophes that are exclusively intended for restoring the habitability of the borrower’s own principal residence, do not fall in the scope of application of the Regulation on Real Estate Financing Measures in Credit Institutions (KIM-V; Kreditinstitute-Immobilienfinanzierungsmaßnahmen-Verordnung), which serves to limit systemic risk arising from real estate financing. The additional criteria for granting loans and reportting requirements prescribed in the Regulation, are therefore do not apply to such financing arrangements.
Background information about the KIM-V:
The FMA issued the KIM-V in 2022, based on recommendations made by the Financial Market Stability Board (FMSG; Finanzmarktstabilitätsgremium). It is intended to mitigate risks to financial market stability that have arisen as a result of the decoupling of property prices over the past decade in conjunction with deteriorating lending standards.
Journalists may address further enquiries to:
Boris Gröndahl (FMA Media Spokesperson)
Telefon: +43 (1) 249 59-6010
Mobil: +43 676 8824 9995
E-Mail: [email protected]