He Government is trying to give a boost to Code of Good Practices. The aid to financial clients, which was approved at the end of last year and is intended to alleviate the mortgage burden of the most vulnerable users, among other points, is not receiving the reception anticipated by the Executive. This is why Nadia Calviño, first vice president of the Government and Minister of Economy, announced yesterday the extension of the Code of Good Practices and I extend the income limit of mortgaged people who can benefit from this tool up to 38,000 euros.
The intention of the Government chaired by Sánchez is to increase the number of mortgage holders who can join the aid. So far, the Bank of Spain collects just under 55,000 membership applications until October, as the minister specified yesterday. Considering that the autumn Financial Stability Report published by the BdE estimated 42,000 membership requests until July, The bank has barely received 13,000 more applications in the last three months.
Employers and the BdE, against the extension of the income threshold
The Government wants to accelerate and try to ensure that there are more beneficiaries of this aid. Those from Sánchez have announced the extension of said measure and a laxity of the requirements, among which stands out the increase in the income threshold of citizens so that they can benefit from the Code of Good Practices, a measure that is far from what was proposed by the Bank. of Spain and by the main banking associations.
Both the organization led by Pablo Hernández de Cos, and the institutions that represent the country’s banks, consider that It was not necessary to raise the income limit for those citizens who want to benefit from the tool. The reason is that, at the time the reformulation of the Code was approved, “the economic context was one of great uncertainty, and a year after its entry into force, many of the uncertainties have been resolved,” explains the AEB it’s a statement.
The employers’ association led by Alejandra Kindelán highlights that “interest rates have entered a phase of clear stabilization, and employment is showing better resistance than expected.” This is why the organization that represents BBVA, Banco Santander or Banco Sabadell, among others, alleges that the Government does not need to raise the income threshold, a message that CECA joins.
Delinquency remains at low levels
Employers reiterate that an example of the greater resilience shown by financial clients is that delinquencies continue to hold up and remain at low levels. According to the latest data reported by the Bank of Spain, The sector’s doubtful debt ratio remained above 3.56% in Septemberparallel to the level set in the previous month.
The AEB highlights that “the level of late payment is now lower than when these measures were approved a year ago.”
Nadia Calviño, first vice president of the Government, during the opening day of the APIE Economics Course at the Menéndez Pelayo University of Santander.
Calviño highlights the resilience of the economy, but is committed to expanding aid
In a similar vein, but with a totally different speech, the Minister of Economy highlighted “the strength of the Spanish economy, employment, and the real rise in wages, which have allowed families to better cope with the rapid interest rate increases.
Calviño pointed the goal to the Government’s box, highlighting that the Executive “has always tried to anticipate the negative environment” and launching relief measures for financial clients.
Despite this, the head of Economy, who in the coming months will join the management of the European Investment Bank (EIB), defends the need to raise the income threshold so that more mortgage holders can be covered by the Code of Good Practices. The Ministry of Economy has fulfilled what Sánchez promised during the investiture session.
The income limit will now be around 38,000 euros, and the response to this increase is that the Government determines that the financial users who move within these ratios are the ones who are suffering the most from monetary tightening.
Those mortgaged with incomes of 38,000 euros, the most affected, according to the Government
«The economy is doing better than we expected, and the economic forecasts are positive, we do not perceive any macroeconomic risk derived from the mortgage market, but also We agree that this user environment with 38,000 euros of income is the one that is being most affected«Calviño argued.
Although the vice president herself asserted that “there has been positive will on the part of the entities”, both the AEB and CECA showed their position against the extension of the income limit for those clients who want to take advantage of this tool.
It remains to be seen if this improvement catalyzes more requests or, on the contrary, shows slight variations as it has been doing until now. At the moment, the bank quantifies 55,000 membership requests, 13,000 more than since July.
2023-12-19 21:10:51
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