The Spanish government announced this Tuesday a package of measures agreed with banking associations to facilitate the payment of home loans for families particularly affected by the rise in interest rates.
The agreement with the banks, approved this Tuesday by a Council of Ministers, applies to a universe of more than one million households, representing almost a third of the 3.7 million mortgages indexed to the Euribor rate, with variable interest rates, according to the Spanish executive.
The measures include the possibility to restructure the debt to the bank several times, with lower interest rates in the first grace periods, or to extend the payment term of the credit.
There is a package of measures aimed at “vulnerable families” and another at “the middle class at risk of becoming vulnerable” because of the rise in interest rates, as explained this Tuesday by the government’s first vice president and minister of finance. Economy, Nadia Calviño, at a press conference at the end of the Council of Ministers.
In the first group, that of vulnerable families, incomes add up to 252,500 euros per year, with measures for those who pay out more than half of what they earn to repay the loan and others for whom the effort ratio is lower, but an increase with at least 20% of the term.
The second group (at-risk families) consists of households with an annual income of up to EUR 29,400 with loans representing at least 30% of what they earn and rising by 20% or more because of interest rates.
The agreement also includes a third group of measures, due to take effect in 2023, that will cover a broader universe of variable rate mortgages, such as reducing costs when converting to fixed-rate loans or eliminating commissions for those who want to pay off credit.
Minister Nadia Calviño said the aim is to “ease the mortgage burden” of families most affected by the “very accelerated rise” of Euribor, the variable interest rates imposed by the European Central Bank, and stressed that lower-income families are also the ones suffering the most from the impact of last year’s inflation.
The major Spanish banks, such as Santander, BBVA or CaixaBank have already expressed their willingness to join the agreement, although they point out that some details need to be clarified and even negotiated.
The agreement has been negotiated with three financial sector associations – the Spanish Association of Banks (AEB), the Spanish Confederation of CECA Savings Banks and the National Union of Credit Cooperatives (UNACC) – and with the Bank of Spain.
These measures should enter into force on January 1, 2023, provided that the banks comply with them, as the adoption of the agreement between the government and associations is optional.
Minister Nadia Calviño said she expected all banks to comply with the agreement within the next month, in time for the new measures to take effect on January 1, 2023.
Source: DN
