The legal moratorium adopted by the Government allows families affected by COVID-19 to access a three-month deferral of their loan or credit installments.
On April 16, credit institutions approved voluntary sector-specific commitments through the AEB and CECA associations, offering the possibility of a moratorium complementary to that of the Government to help alleviate the negative consequences of the pandemic, under the Guidelines published by the European Banking Authority (EBA).
This sector-specific banking agreement offers clients a deferral of the principal of their loans or credits for a period of up to 12 months for mortgage-backed loans and up to 6 months for personal loans. Banks have extended the deadline to apply for the deferral until September 29.
With this voluntary moratorium, the banking sector has expanded both the number of families that can benefit from payment deferrals and the duration of these deferrals compared to the legal moratorium approved by the Government.
The sector-wide moratorium is complementary to the statutory moratorium, as established by both the Sectoral Agreement and Royal Decree-Law 19/2020. Once the period during which the most vulnerable families could apply for the legal moratorium has ended, they may apply for the sector-specific moratorium consecutively.
In addition to undertaking this moratorium commitment, most credit institutions have adhered to the Code of Good Practices for mortgage debts on primary residences. This Code provides for deferrals and restructuring of mortgage debts for especially vulnerable families.
