Spanish Government Considers Extending Moratorium On Evictions

25/08/2014 – Expansion

The Government ruling in Spain is weighting up possibility of prolonging the force of eviction moratorium which is due in November this year. In opinion of the Minister of Economy, Luis de Guindos (pictured), the regulation ‘might be still necessary’ and ‘the measures have had a very positive impact’ on debtors in good faith who are incapable of paying their mortgages.

Mr. De Guindos assures he has got a full control over evictions in the country. According to the latest data of Spain’s central bank, their number fell 8.87% last year in regard to main residence. Also, cases of forceful removal from repossessed properties declined by 57%.

However, throughout 2013, there have been 39.000 cases of physical removals from the main residency. The fact, according to the Minister, proves ‘unceasing necessity’ of the moratorium law, approved in November 2012 for a two-year term. Facing its imminent expiration, Luis de Guindos assures that ‘if the regulation proves itself to be needful, of course we will extend it’.

In the spirit of helping the debtors, the Government will reassess other measures taken up to cope with eviction-related problems, such as the Good Practice Code For Banks that allows the insolvent victims to apply for debt restructuring, relief, in-lieu payment or even for the social renting scheme. To the Minister’s mind, these regulations ‘are having a positive impact’ on the current situation. 

Apart from changes in the eviction law and simplification of beaurocracy in the country, De Guindos strives at unification of the contribution of companies in Spain. In September, the department will present a new financial reform containing guidelines for non-banking lending to Spanish firms.

Moreover, the amendments in law will concern the public debt issuing, auditory companies and export of goods.


Original article: Expansión (after E. P.)

Translation: AURA REE