138
138

Santander to Grant 6-Month Grace Period on Mortgage Payments

26 March 2020 – Banco Santander in Portugal is following in the footsteps of the Caixa Geral de Depósitos (CGD), moving ahead with a plan to grant a 6-month moratorium on mortgage and consumer lending payments. The bank also intends to give companies a 12-month grace-period on their debts.

The approximately 250,000 Portuguese families who have mortgages in good standing with Santander will be able to access the bank’s online platform to request an immediate grace period on their debt. The Spanish bank is awaiting the implementation of the necessary legal frameworks in Portugal, which would follow guidelines set by the European Central Bank. The moratorium would also apply to consumer debt.

At the same time, the bank will offer to renegotiate loans to small and medium-sized companies that are also currently in good standing. In this case, the financial institution will offer a grace period of up to twelve months.

Any offer of grace periods to individuals or companies would not affect the spread on their loans, nor incur other charges. Additionally, Santander stated that it is ready to provide three billion euros in the credit lines as soon as the Portuguese government approves that measure as well. The bank said that it is prepared to provide immediate capital injections to its corporate clients.

Original Story: Jornal de Negócios – Rita Atalaia

Translation/Summary: Richard D. Turner