@hisah - At a cost. The interest rates are 25% (the recent KBA announcement is almost meaningless. All it does is extend the repayment period by reducing the Principal one pays). And it will only benefit a few. They are allowed to get 20% more than the 'original' payment.

Say you have a 20yr mortgage (just an example & the numbers are approx). Your payment was 100,000/month with Interest 75k + Principal 10k.

Interest rates rise from 15% to 25% so your interest jumps from 75k to 125k. What the bank does is... they say you pay 120k (interest only) with zero principal. The bank takes a 'hit' of 5k/month in interest + no more principal coming in.

The banks benefits from earning 24% in interest. In addition, you do not default so the loan is 'good' on their books. In the meantime, if rates drop, then the 'excess' can be applied to Principal.