Moncloa ignores ERC and Bildu and negotiates alone with the bank on mortgages


The negotiation is -and will be- only with the banking sector: without intermediaries, or third parties. Therefore, the pressure exerted by the members of the Executive, the Esquerra Republicana de Catalunya (ERC) and Bildu, will not influence the negotiation. This is confirmed by government sources to this newspaper, who reject the latest measures proposed by their partners on capping changes from variable to fixed rate mortgages, matching the refinancing model for vulnerable to the middle class, or limiting it to 0.5% variable interest rates.

Until now, the only thing that has been known of the draft on which both the bank and the Ministry of Economy directed by Nadia Calviño are working is the modification of the royal decree of the Code of Good Practices with which it is offered refinancing to vulnerable people (with joint annual income of 24,318.84 euros) if your interest rate rises by at least 30% due to the rise in the Euribor. A measure that its partners – who are the ones who ultimately have to approve the decree in Congress – seemed insufficient.

But among this sea of ​​ideas offered by each other in the negotiation, an offer has appeared that has managed to seduce at the same time Calvinoto the second vice president, Yolanda Diazalready one of the key partners for the law to go ahead, CKD. It is about freezing mortgage payments for a year and offering a moratorium on the payment of capital that would not be paid until 2024. A measure that would have been proposed CaixaBank a few weeks ago. However, each entity then has its own rules and the Government will have to seek that common agreement, also using tools that allow alleviating the rise in interest rates. A negotiation that also occurs in full review of these by the European Central Bank (ECB) and where some analysts suggest that a new rate hike of 75 basis points could be announced.

Moncloa -with this decision- throws a small wink at the bank after the declared ‘war’ that the Prime Minister, Pedro Sánchez, began last summer, describing them as “powerful” and after announce a tribute against banks and electricity companies. From the Executive they are aware that financial institutions are a vital tool to get ahead of the coming recession. The Spanish bank is solvent today and – far from it – is leveraged as it was in 2008, however, the governor of the Bank of Spain, Pablo Hernández de Cos, has already warned on several occasions that the income that the bank has today banking will be reduced in the coming years.

The opposition, meanwhile, does not position itself or doubt about the intervention of mortgages. Some experts consulted by this newspaper affirm that “market interventions are dangerous because it is very easy to start, but the difficult thing is to finish. There is never a good time for it.” On the other hand, Treasury auditors point to the “vulnerable class”. “It is very difficult to determine and control and it clearly causes Spaniards of two classes, those who fall into that category and those who do not, who they are usually the suffering middle class“.

In the midst of this debate, the Minister of Transport, Mobility and Urban Agenda, Raquel Sánchez, expressed this Tuesday the need to approve the housing law before the end of 2023. A law totally separate from the cap on mortgagesand which continues to be bogged down in Congress by the frictions between the government partners, who seek to extend the rent limit to any tenant (whether they have one or nine homes) and not only the large holders (ten or more) and, in addition , extend the ban on evictions.


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