Spain: bank deal against foreclosures
Together with the Bank of Spain and the banking industry association, the Spanish government has negotiated a package of measures to cushion the impact of the current increase in mortgage interest rates. Around one million low-income households will receive mortgage support in a bid to avoid mass foreclosures like those in the 2008 crisis. The national press is impressed.
An empathetic and swift reaction
La Vanguardia praises the cooperation between banks and the government:
“This package of measures should help to avoid defaults and thus also evictions. ... The plan for social protection in the face of rising mortgages is included in a new code of good practice for banks. The adoption of the code is voluntary, but it is binding for those banks that do so. ... In any case, the sensitivity and speed with which the government and the financial sector have moved to alleviate the situation of families struggling with increased mortgages must be applauded.”
El Periódico de Catalunya reminds readers of the traumas of the 2008 crisis:
“Tens of thousands lost their homes after losing their jobs, which meant they couldn't pay their mortgages. As a result, the banks took possession of an immense and unwanted housing stock. This painful experience has now made it possible for the government to reach an agreement with the banks. ... These measures need not come at the expense of the banks, which will undoubtedly benefit from the renegotiation of the loans, because they will avoid the kind of mass defaults and foreclosures that occurred more than a decade ago. ... It is precisely the quest for this mutual advantage which makes it possible to view these commitments as balanced.”