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Financial stability and financial risks

Non-Callable Loans for Cooperative Housing Societies

In recent years, the range of mortgage-credit products has been developedsubstantially and in some cases the consequences of the financing structures arenot easy to understand. Some, especially new, cooperative housing societies havetaken out quite risky non-callable loans with rising interest payments. The structureof these loans makes it difficult to understand the financial consequences,such as potential price losses if interest rates decline and the impact of risingdebt service payments.