Spain to agree bank mortgage relief measures by weekend

MADRID (Reuters) – The Spanish government expects to reach an agreement with banks by the end of this week on mortgage relief measures to help vulnerable households and middle-class customers cope with the rising cost of borrowing such loans. Yes, the economy minister said.

Governments and lenders are preparing a broader array of measures to help families most affected by the rise in variable mortgages caused by the European Central Bank’s aggressive interest rates.

Among the measures under discussion, Spanish lenders will offer loan repayments of up to five years to vulnerable households whose variable mortgage costs have risen by at least 30 percent, according to a draft proposal seen by Reuters last month. open to extend

Economy Minister Nadia Calvino said: “We hope to reach an agreement as soon as possible. and gave it to the bank,” he said. News briefing on Tuesday after the weekly ministerial meeting.

She said governments and banks are working to expand and improve existing industry-wide good practices to support vulnerable groups.

Calvino said he has additional protocols in place to support middle-class families who may also be at risk as a result of accelerated interest rate increases.

In Spain, about three-quarters of the population are homeowners, most of whom opt for variable rate mortgages.

Asked whether the measures now underway could force banks to hold more reserves, Calvino said lenders are likely to see the impact given recent gains. He said there was room to help alleviate the situation of affected families.

Reporting by Jesús Aguado, Editing by Andrei Khalip and Emelia Sithole-Matarise

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