Italy faces the Coronavirus on all fronts: Mortgages under protection

March 11, 2020
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The Italian Council of Ministers has announced a package of emergency measures amounting to 25,000 million euros and the first batch of that amount (about 12,000 million) is set to be approved.

The council is contemplating, among other things, the temporary suspension of mortgages and some taxes. Therefore, the plan is aimed at both families and companies.

Prime Minister Giuseppe Conte has explained that this multibillion-dollar plan already has the approval of the European Central Bank (ECB) and must be ratified by the transalpine Parliament.

In the case of mortgage loans, Italy plans to approve people with incomes of up to 30,000 euros and who are unemployed for at least 30 days or suffer a significant reduction in working hours during that period do not pay the fees of the mortgage for a period of up to 18 months.

Spanish Prime Minister Pedro Sánchez has also announced the implementation of extraordinary measures

Spain has shown a growth in the epidemic, creating a crisis where up to now there are 3,000 confirmed cases, measures to prevent the spread of the virus and economic.

Recently, Prime Minister Pedro Sánchez has announced that economic resources will be injected into the health system to guarantee its operation.

In this way, 2,800 million euros will be allocated to the communities that are the ones with the Health powers so that they can face the emergency.

A specific financing line of 400 million euros is created for companies and the self-employed in the tourism, transport and hospitality sector, one of those most affected by the pandemic.

The protection of discontinuous permanent workers in the tourism sector will also be expanded, so that the bonuses cover the months of February to June 2020.

At the mortgage level, and despite the fact that at the moment there are no signs of a moratorium on the payment of installments, idealista / mortgages maintain that the effects are already being noticed in the new applications.

"Banks are evaluating a scenario of job loss, so they are being more cautious when evaluating new applications, especially in terms of job stability," says Villén, responsible for idealista / mortgages

At the moment it has not said anything about mortgages as Italy has done, however, deferrals of tax debts with the administration will be granted to SMEs affected by the coronavirus for six months without interest. According to Sánchez, this will allow injecting 14,000 million euros of liquidity into the economy.

The President of the ECB, Christine Lagarde, has assured that the world is facing a crisis like that of 2008 if there is no united and global response.

At the moment, the approval of joint measures is expected from Brussels and from the ECB itself, at its monthly meeting.

March 11, 2020

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