Spanish Authorities Agree On Measures To Help Mortgage Borrowers
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.