The General Assembly,
Concerned that debt bubbles would cause spirals of loans not backed by assets (“empty” loans) which often will lead to economic crises in the long run,
Astonished at the level of these “empty” loans in many nations with potential to cause bubbles,
1. Requires nations to have a loan interest rate of at least 10% and a savings interest rate of at least 7%, with exceptions listed as follows:
a. The nation is in a recession, (general price level and GDP decrease of at least 10% over a continuous period of time of two quarters)
b. The nation has a general inflation rate of less than 3% and an asset value inflation rate of less than 10%,
c. Mortgage loans which will be covered below,
2. Further requires regulations on mortgage interest such as but not limited to:
a. A 2% cap for urban flats and apartments
b. A 4% cap for urban, suburban, and rural housing
c. Ban on mortgages for estates and villas (where the total land usage is more than 150% of the interior floor area) in favour of upfront payment of the full price
3. Demands that borrowing for investment be capped at 90% of total asset ownership to prevent personal and corporate bankrupting due to economic mismanagement.