2023-12-05 00:14:18
The long awaited meeting between Government and the banks It already has a date. The economic vice president, Nadia Calvinohas summoned the three employers banking -AEB, CECA and Unacc- the next Dec. 18 mid-morning (unless a last-minute change of plans) to discuss with them the expansion of the help plan for mortgage holders in problems that their department and the sector They agreed in November from last year. The figures of applications and granting of mortgage relief measures are being very inferior to those initially planned, so the President of the Government, Pedro Sanchez, and Calviño herself announced in the electoral campaign last July an extension of the scope of the plan. This expansion oppose both the Bank of Spain and the banking associations, while the supports the consumer association Asufinall of them summoned for the new meeting.
The star initiative that the vice president intends to carry out is raise the income maximum annual joint families who can benefit from the Code of Good Practices for mortgage relief for low-income households middle class. Thus, it would go from the current 29.400 euros (3.5 times the IMPREM) to the “average income” (37.800 euros). The extension of this income scale – also included in the PSOE and Sumar government pact– would allow more households to benefit from the relief measures provided for in the code, such as expanding seven years the term mortgage maturity or freeze the quota for 12 months. For a mortgage of 150,000 euros signed in 2018, Calviño pointed out in July, it would mean a saving 300 euros per month and 3,600 euros per year. The vice president also foresees extender over time the suppression of commissions by early repayment credit and mortgage change from variable to fixed rateinitially planned only for 2023.
Provision margin
According to data from the Bank of Spain, the aid plan for the mortgaged received nearly 42,800 requests between January and July by families with a debt pending payment of 5,367 million euros, a “limited” figure compared to the total number of mortgage loans in force (less than 0.4%) and also compared to the loans that met the conditions to benefit, although also “notably higher” than the number of requests that the previous Code of Good Practices. Just a 8% of requests here sido ya approvedwhile around and 50% are earrings to be resolved and around al 40% have been rejectedmainly – in 90% of said cases – for not meeting the requirements.
The Executive understands that the fact that the economy and the employment are evolving better than expected last November explains that the applications are being lower than predicted (he spoke of up to a million homes potentially beneficiaries, although the Bank of Spain later reduced the truly expected number to around 200,000). The fewer requests mean that the cost of the measures for the banks via provisions is also being lower, so Economía considers that these they have margin to expand the income criteria of the beneficiaries without their accounts suffering additional deterioration than initially planned.
Better than expected
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On the contrary, both governor of the Bank of Spain, Pablo Hernández de Cos, as the representatives of the banks have shown their refusal to expand the plan. “The economy has worked better than we thought in terms of employment and GDP, and the late payment it is under control at the moment. Being a preventive measure and having only one year passed since the entry into force of the code, it seems to us that it is necessary to leave more time to work before taking definitive measures or conclusions,” argued Antonio Romerodirector of association services CZECHthis Monday at I Iberian Press Financial Forum, publishing company of EL PERIÓDICO. “It does not seem that there are objective elements that recommend or make it convenient to modify the code. We must stay with the fact that the code responds to those who need it and gives peace of mind to those who may need it in the future,” he shared Maria Abascal, general director of the AEB.
It remains to be seen if Calviño will be able to change their minds. And it is an important issue: accession to the Codes of Good Practices is volunteer for the entities (although once subscribed by the entities, their compliance is mandatory). There is always the possibility, of course, that the Government decide to legislate in the event that the bank continues to refuse to reopen the code. Calvino already tried in June extend the plan, but the governor stopped it in a tense meeting in which the bank employers, Asufin and representatives of the elderly were also present. The meeting next Monday the 18th was initially scheduled for Septemberbut it was finally delayed because the Ministry of Economy understood that the Council of Ministers could not be in place to approve the changes it wants to promote.
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