Spanish Prime Minister announces possible suspensions in mortgage repayments due to the Coronavirus outbreak.
Current emergency measures due to the virus have seen the closure of thousands of businesses across Spain, leaving many owners and the self-employed in financial difficulty.
Some light relief came on Tuesday with the government announcing its €200 billion relief package; included in the 45-page decree is the possibility of suspending mortgage repayments and rental repayments for companies, and the self-employed, who find themselves economically vulnerable due to the 15-day state of alarm.
The suspension – which is likely to be between one and three months, according to experts consulted by El Pais newspaper – intends to help the self employed whose wages are negatively affected by the current situation and to those who will suffer the economic impact that is likely to follow.
There are also measures prohibiting utility companies from cutting off electricity and water supplies due to unpaid bills during this time and the government has announced that no one will be evicted from their homes because of the Coronavirus – further details on this point have not yet been disclosed.
Half of the €200 billion relief fund is tied to a public guarantee scheme to help struggling businesses and €17 billion is allocated to support groups that are likely to suffer from the effects of the pandemic, reports El Pais.
“The rest will be private resources. It will be the greatest mobilization of resources in Spain’s entire democratic history,” said Spanish Prime Minister Pedro Sánchez.