BMN decides against eliminating the minimum level clauses from its mortgages.

BMN considers that, after revising its mortgage portfolio, there are no reasons for eliminating the minimum level clauses that affect 27% of the portfolio. In fact, BMN does not think it is “appropriate” to eliminate the so called “minimum level clauses” affecting around 27% of the mortgage portfolio of the group on the 30th June 2013, after carrying out an analysis of these conditions following a request from the Bank of Spain.

The regulator sent a letter to the bank on the last 25th June requesting the analysis of the impact of the decision of the Supreme Court that declared these conditions void when there was a lack of transparency.

“After evaluating the “minimum level clauses” of BMN, it can be concluded that they are not affected by the decision”, the institution explains in an announcement sent to the National Share Market Association.

For this institution, whose 65% is controlled by the State, the sentence does not affect its clauses as it understands that they were agreed according to regulations of the Bank of Spain and were negotiated individually with each client.

“According to BMN, it is not appropriate to eliminate these clauses existing in its mortgage portfolio”, the institution explains.