The entities analyze the repayments of the loans that may be most affected by the rise in rates, but exclude the generalization of this support
Those responsible for the Spanish banks are still looking for a formula to absorb the rise in interest rates for customers who are most affected by the rise in the Euribor, in consultation with the Ministry of Economic Affairs. And while there is no concrete proposal on the table yet, the financial sector is clear on what the line of action will be: there will be no generalized help for all variable mortgage customers who see their installments increase in the coming months. The support programs will “target those who need it,” according to industry sources. That is, for families with greater economic needs and who are vulnerable to this new and unexpected context of rising interest rates.
The meetings between those in charge of the banking employers (AEB and CECA) and the department headed by the vice president headed by Nadia Calviño are taking place today pending a formula that will be “by consensus”. Although industry sources deny any lack of “cohesion” between some entities and others. Each company has a different customer profile (in some cases many individual mortgage holders and in others many SMEs for example), but the idea is to define the mortgage holders most affected by a rise in the Euribor which has fallen from -0 , 5% at the beginning of January of this year, to trade at 2.6% the same Thursday. It’s about “calibrating who really needs support” from within the entities. And whether that protection will be enough with a tightening of the Code of Good Banking Practices in force, which already allows for actions such as restructuring debt to certain groups.
Never in more than two decades of life in the eurozone has that mortgage indicator experienced such a vertical rise in such a short period of time. And although it will have an impact of about 120 euros per month, in reality that average figure hides another reality: a large part of the mortgages affected by the rise in the Euribor were those signed up to ten years ago, with many spreads. lower than the current one and with an outstanding debt that has also been reduced in recent years thanks to 0% interest rates.
The bank insists that, for now, “the default level is minimal” and they expect an increase, but not to levels like a decade ago, when the default rate hit 13%.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
