Forex Notes

British Banks Will Not Be Easy To Refinance Mortgage Bonds Amounting To $ 500 Billion

British banks will face serious difficulties in refinancing stg319 billion ($ 500 billion) of bonds secured by mortgage, because the British government is preparing to close two anti-crisis program, said of investors service Moody's.

"It is unclear whether the stock market, secured by mortgage, refinance rate alone overpower required within the required time" - the report says.

Government programs allow banks to withdraw from their accounts, securities, collateralized mortgage, exchanging them for Treasuries. Bank of England announced on February 10, he had no intention to extend the so-called special program to boost liquidity beyond 2012. Program to provide guarantees for loans to be completed in 2014.

"If other debt markets, such as a secured bond market will not be able to close the funding gap, which is formed due to the downsizing of government programs, the UK mortgage market will experience significant pressure on myself," - concluded analysts Moody's.