## Annex Figure 2.1.1. Loan Characteristics, Rules, and Regulations

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**Canonical URL:** [Annex Figure 2.1.1. Loan Characteristics, Rules, and Regulations](https://www.imf.org/-/media/files/publications/gfsr/2017/october/chapter-2/pdf-data/annexfigure2-1-1.pdf)

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### Survey scope and methodology
- Figure is based on an IMF desk survey of the prevalence of certain debt characteristics in 80 countries.
- Source: IMF staff calculations.

### Key findings on loan characteristics, rules, and regulations
- Recourse: In 80 percent of the sample, recourse is commonplace in loan agreements.
- Early prepayment restrictions: Feature in about 40 percent of the countries surveyed.
- Tax treatment:
  - Tax deductibility is common in half of the sample, with limitations on how much debt (or interest payments) households can deduct from their taxes.
  - Limits on tax deductibility (TAXL) are present in some countries (survey indicates existence of such limits; no aggregate percentage given beyond the “half of the sample” statement for TAXD).
- Fixed-rate mortgages (FIX): Fixed-rate mortgages (with the initial rate fixed for 10 or more years) are offered in most countries.
- Consumer protection (PROT): A majority of countries have financial protection regulations (against predatory lending practices).
- Loan transparency (TRA): A majority of countries have loan transparency rules and regulations (through credit registries or credit bureaus).
- Land supply and development constraints:
  - Administrative restrictions on land supply (GOV) are more prevalent in advanced economies (about 60 percent) than in emerging market economies (44 percent).
  - Natural restrictions on density of development (NAT), related to size of the country, livable land area, population density, topography, and geography, exist in about 30 percent of the countries surveyed.

### Legend / variable labels used in the figure
- FIX = fixed rates are offered
- GOV = administrative restrictions on land supply
- NAT = natural restrictions on density of development, such as topography and geography
- PEN = restrictions on early payment
- PROT = consumer financial protection legislation in place
- REC = mortgage loans are full recourse
- TAXD = debt or interest payments are tax deductible
- TAXL = limits on TAXD exist
- TRA = credit registry

*Source: IMF staff calculations. Note: Figure is based on an IMF desk survey of the prevalence of certain debt characteristics in 80 countries.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/october/chapter-2/pdf-data/annexfigure2-1-1.pdf_