According to the Ministry of Economy and Digital Transformation, the Spanish government and banking industry have agreed on steps to assist more than a million vulnerable families with their mortgages in the face of rising interest rates.

In light of a rise in the Euribor (European Interbank Offered Rate, average lending interest rate), the Council of Ministers adopted a mortgage relief plan for over a million poor or vulnerable households.

The authorized protocol consists of actions to enhance the 2012-approved Code of Good Practice for Vulnerable Mortgage Debtors.

During the five-year grace period of the main debt, a mortgage loan can now be restructured at a reduced interest rate (from the existing Euribor of 0.25% to Euribor of 0.1%). Additionally, it allows for the debt to be restructured and for payments to be postponed.

source: ft.com