The Government of Spain aims to prevent those groups most affected by the crisis and those who are evicted from losing their homes. The government also approved action to move forward on developing the asset management company that will facilitate the definitive clean-up of financial entities.
The Council of Ministers approved a Royal Decree-Law on urgent measures to improve protection for mortgage debtors. The Vice-President of the Government, Soraya Sáenz de Santamaría, explained that this measure forms part of an initial set of decisions taken by the government aimed at combating the most urgent situations.
The Royal Decree-Law provides for a two-year moratorium on evictions affecting the most vulnerable groups in society. The Minister for Economic Affairs and Competition, Luis de Guindos, said that this measure aims to "avoid people being turned out of their home".
Luis de Guindos explained that the measure will affect large families, single-parent families with two children, families with minors under the age of three and family units that include disabled persons, dependent persons or sick persons. It will also apply to families where the mortgage debtor is out of work and no longer entitled to unemployment benefits, as well as family units that include a victim of gender-based violence.
The Council of Ministers approved a Royal Decree establishing the legal regime for asset management companies, within the framework of the agreements with European institutions for the recapitalisation of the Spanish banking system. This decision will result in the implementation of the Asset Management Company deriving from the Bank Restructuring (SAREB) on 1 December.
Soraya Sáenz de Santamaría confirmed that the company "will pool the toxic assets from entities undergoing restructuring processes in order to manage and sell them off in an orderly manner". The regulation will establish which assets are to be transferred, how they are valued and the legal structure of the company, always "from a perspective of maximum transparency, professionalism and subject to continuous evaluation".
Luis de Guindos announced that the maximum total volume of assets has been set at €90 billion, although estimates put the actual figure at around €62 billion. This includes property loans in excess of €250,000, real estate assets from foreclosures exceeding €100,000 and shareholdings in real estate companies. Property loans that do not exceed €250,000 and assets from foreclosures that do not exceed €100,000 are excluded.
The minister stated that the average price adjustment under which assets will be transferred from banks receiving aid to the asset management company stands at approximately 50 per cent. This stands at 63 per cent for assets from foreclosures, and close to 46 per cent for property loans.
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