The Unassuming Economist

“While the default rates on mortgages and household indebtedness have been low, further consideration should be given to precautionary measures, such as loan-to-value (currently at 74 percent for residential and 69 for commercial in 2014) and debt-to-income ratios, given the rapid increase in mortgages, relatively high overall exposure to real estate, and pick up in real estate prices—fueled by a combination of factors, such as tax incentives for first time buyers, increase in rental demand stemming from the international investor program, increased migration, and the ECB’s QE.”, says IMF’s report on Malta.