The measures agreed between the Government and the banks to alleviate the mortgage burden of up to one million families could have a hidden risk on which Jose Antonio AlvarezCEO of Santander Bankalready warns the Executive and the citizens: “That there should not be a de facto Difficulty accessing credit in the future for those who take advantage of the measures because, technically, they would go up on the risk scale and worse credit rating”.

Álvarez’s doubts have been exposed upon his departure from 29th Meeting of the Financial Sector, organized by Deloitte, the Appraisal Society and ‘ABC’.

The CEO of Santander referred to the stage 3 in which their mortgages would enter, that is, those qualified by the bank of doubtful collection or that they have presented some non-payment.

However, Álvarez has confirmed that the bank’s intention is adhere to the agreement, although he has indicated that Santander’s will is “to work so that the mortgage market is healthy and solid”. In this sense, he has pointed out that “We are not going to sign if we see that the mortgage market, in the future, is not healthy and solid.”

As the fine print of the agreement between the Government and the banks is not yet known, the leading swords in the sector that have passed through this financial forum -Onur Genç, from BBVA, or Gonzalo Gortázar, from CaixaBank- have shied away from making any assessments of it. Only a few have sent a small message of relief to the most vulnerable mortgagees in the face of the rapid rise in installments experienced by the rise in the Euribor.

[La subida del Euríbor aumenta el interés de los clientes por la hipoteca mixta, pero aún es minoritaria]

“The general idea regarding mortgages is that the Spanish banking sector has always been willing to help its customers,” stressed Manuel Menéndez, CEO of Unicaja Banco.

The catalog of preliminary measures ranges from reinforcing the current code of good practices to extending the amortization of loans by up to seven years. [Consultar aquí una guía práctica del pacto entre el Gobierno y los bancos para aliviar las hipotecas: estas son las familias que se beneficiarán].

Risk in SMEs

In another order of things, the attending bankers have shown their concern for small and medium-sized companies in the current environment of high inflation. “It is the segment where we see the greatest risk of deterioration, because at SMEs will find it more difficult to transfer the higher costs they bear to the prices of their products and services”Menéndez has pointed out.

“The great challenge for banks in Spain is to deal with the SME sector in a slightly more stressed environment, especially if the worst scenarios materialize,” added Álvarez about a risk that, however, “is not yet we see”. Although they do take it into account.

After being approved by the Council of Ministers, the Government trusts that in the next few hours there may be a definitive agreement with the financial institutions. Specifically, with the employers’ associations AEB and CECA. At the moment, and according to what Nadia Calviño said at the press conference of said Council, “Caixabank is going to sign it, but it is subject to the decision-making bodies of the entity itself agreeing on it. AndI hope you all sign this Code of Good Practices”.

Source: Elespanol

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J. A. Allen

Author, blogger, freelance writer. Hater of spiders. Drinker of wine. Mother of hellions.

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