Banks Plan Mortgage Help as Windfall Profit Debate Hits Austria

Austrian banks plan to help households struggling to repay mortgages in response to a growing public outcry over windfall profits they’re reaping from rising interest rates.

The firms plan to present joint measures in the coming days to help borrowers struggling with variable-rate mortgages, said Willi Cernko, the Chief Executive Officer of Erste Group Bank AG.

“Should borrowers with variable—rate credit face individual stress situations, Austrian banks will make a contribution via concessions,” Cernko, who also heads the industry group at the Austrian Chamber of Commerce, said in a post on LinkedIn. About half of all loans are ...