Dealing wisely with borrowing money is always important. You must also be able to repay all the money that you borrow with ease. A number of safeguards have therefore been built into the Dutch system of borrowing money. But what about when you go abroad for this?
Lower protection in other countries
It sometimes turns out to be a bit more flexible there. It is a point that the Dutch government is concerned about. If consumers can borrow their money abroad too easily, the protective system in the Netherlands will slowly leak. If you look around the European Union, there are many countries with a lower level of protection. The financial institutions in those countries also offer their loans to foreigners. The Dutch government, for example, is concerned about flash loans from the member state of Malta.
Degree of protection in the Netherlands
The reason why this is so topical now stems from the proposal of the European Commission that points the other way. The European Commission wants to ensure that EU residents can borrow money much more easily in other Member States. Minister of Finance Dijsselbloem therefore feels called upon to warn against this proposal. He expects the degree of protection in the Netherlands to be diluted if the European Commission proceeds to harmonize the protection standard.
Don’t ask usury rates
In particular, asking usury rates must be prevented. This is not possible in the Dutch system. This warning comes from the Netherlands Authority for the Financial Markets (AFM), which raised the alarm due to the rapid emergence of such loan systems.
Dutch economy is growing
Meanwhile, the Dutch economy is moving in the right direction again. More and more Dutch people are able to get the money rolling again. A lot less is saved and consumer spending increased by 16 billion euros in the last 3 years. This extra consumption reinforces the growth of the Dutch economy.