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Bankia gives six-month stay of grace for mortgage and loan repayments
27/03/2020
BANKIA will give homeowners a six-month moratorium on their mortgages – only requiring them to pay the interest, not the capital – and on personal loan and self-employed or sole traders' business loan repayments.
The partially State-owned entity will allow this stay of grace to all those who are affected by the Coronavirus quarantine period by not being able to carry on working, where their companies have had to lay them off temporarily or where they are self-employed and have had to cease their activity until further notice.
Chairman José Ignacio Goirigolzarri, during the recent shareholders' AGM, sent out a message of 'support and sympathy' for those affected by the Covid-19 virus – which has been renamed SARS-CoV-2, although the title has yet to catch on – and recalled that 'there is a lot of work ahead' of everyone, which 'will not be an easy task'.
Fortunately, Spain's economy is now healthy enough that it is able to set aside substantial funding to help workers and business owners through the crisis, and is calling for companies to keep paying their staff where they can, to seek financial help to enable them to do so if they cannot, and to only lay people off temporarily.
Those laid off can sign on the dole immediately, irrespective of how long they have been 'paying into the system' for this contributory benefit, and what they claim during the Covid-19 crisis will not be counted against their existing or future entitlement.
José Ignacio Goirigolzarri says it is 'hard to see how far and for how long' the effects of the Coronavirus outbreak will continue, but that the bank is 'taking measures that go on far beyond' the hoped-for end-of-quarantine date of April 11, just in case.
Goirigolzarri says the government is 'heading in the right direction', despite criticism internally and in the British and US media, and has praised the 'immense efforts' of Spain's health service and the many other industries and institutions which are still working in order to ensure basic necessities are available to the population.
Comfortingly, Goirigolzarri says the current crisis 'is nothing like what we went through in the last decade', referring to the global recession which dragged on for years in Spain, since the present situation is finite and not caused by financial problems.
Also, the public health crisis is 'giving everyone lessons' which will later 'allow for much more efficient management' in all quarters of private, public and commercial life, Goirigolzarri assures.
Some of the positives expected to come out of the lockdown include companies being more flexible about staff hours and allowing them to work from home, children's education being readily available outside the classroom, and non-cash payments being accepted more widely and for smaller amounts – as well as a likely embracing of public freedom that sees society 'indulge' in leisure activities and socialising more than ever before to make up for lost time.
“The Central European Bank [BCE] is responding rapidly and firmly, and Spain now has a strategy in place for anticipation in fiscal terms,” Goirigolzarri says.
“Financial assistance for the economy is proving to be rapid and of considerable volume.”
Although he criticised the 'lack of firmness, harmony and sympathy' in 'fiscal policy' in 'certain EU countries' – which he did not name – Goirigolzarri says the current issue is one that will 'go on for weeks, not for years, like the previous recession', meaning it will be 'more possible to contain the financial impact' of the shutdown.
Additionally, the financial services sector is able to respond 'from a position of strength' to the present upheaval, which was not the case with the financial crisis that started in 2008.
“This means banks have a fundamental rôle in working closely with political institutions in helping families and businesses,” Goirigolzarri says.
“Nowadays, thanks to the hard work the banking community has put in all these years, the finance industry is not part of the problem; rather, it's in a position to be part of the solution.”
As well as a six-month stay of grace on repaying mortgage capital and personal and small business loans, Bankia intends to be 'more flexible' in taking commission payments from accounts – especially where these are set up for receiving customers' regular income payments, such as wages or pensions – and will temporarily cease charging its clients for withdrawals from cashpoints at other banks.
The latter is to encourage Bankia customers to draw their cash out as close to home as they can, rather than travelling to their nearest Bankia branch where this is some distance away.
Like most banks at present, Bankia is encouraging its customers to make use of internet and telephone channels for transactions or to contact staff – who are still attending to the public – and only use their physical offices where this is unavoidable.
These will still be open for that reason, says Goirigolzarri, who has praised Bankia staff for their 'commitment' and said he is 'proud' of their 'efforts'.
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BANKIA will give homeowners a six-month moratorium on their mortgages – only requiring them to pay the interest, not the capital – and on personal loan and self-employed or sole traders' business loan repayments.
The partially State-owned entity will allow this stay of grace to all those who are affected by the Coronavirus quarantine period by not being able to carry on working, where their companies have had to lay them off temporarily or where they are self-employed and have had to cease their activity until further notice.
Chairman José Ignacio Goirigolzarri, during the recent shareholders' AGM, sent out a message of 'support and sympathy' for those affected by the Covid-19 virus – which has been renamed SARS-CoV-2, although the title has yet to catch on – and recalled that 'there is a lot of work ahead' of everyone, which 'will not be an easy task'.
Fortunately, Spain's economy is now healthy enough that it is able to set aside substantial funding to help workers and business owners through the crisis, and is calling for companies to keep paying their staff where they can, to seek financial help to enable them to do so if they cannot, and to only lay people off temporarily.
Those laid off can sign on the dole immediately, irrespective of how long they have been 'paying into the system' for this contributory benefit, and what they claim during the Covid-19 crisis will not be counted against their existing or future entitlement.
José Ignacio Goirigolzarri says it is 'hard to see how far and for how long' the effects of the Coronavirus outbreak will continue, but that the bank is 'taking measures that go on far beyond' the hoped-for end-of-quarantine date of April 11, just in case.
Goirigolzarri says the government is 'heading in the right direction', despite criticism internally and in the British and US media, and has praised the 'immense efforts' of Spain's health service and the many other industries and institutions which are still working in order to ensure basic necessities are available to the population.
Comfortingly, Goirigolzarri says the current crisis 'is nothing like what we went through in the last decade', referring to the global recession which dragged on for years in Spain, since the present situation is finite and not caused by financial problems.
Also, the public health crisis is 'giving everyone lessons' which will later 'allow for much more efficient management' in all quarters of private, public and commercial life, Goirigolzarri assures.
Some of the positives expected to come out of the lockdown include companies being more flexible about staff hours and allowing them to work from home, children's education being readily available outside the classroom, and non-cash payments being accepted more widely and for smaller amounts – as well as a likely embracing of public freedom that sees society 'indulge' in leisure activities and socialising more than ever before to make up for lost time.
“The Central European Bank [BCE] is responding rapidly and firmly, and Spain now has a strategy in place for anticipation in fiscal terms,” Goirigolzarri says.
“Financial assistance for the economy is proving to be rapid and of considerable volume.”
Although he criticised the 'lack of firmness, harmony and sympathy' in 'fiscal policy' in 'certain EU countries' – which he did not name – Goirigolzarri says the current issue is one that will 'go on for weeks, not for years, like the previous recession', meaning it will be 'more possible to contain the financial impact' of the shutdown.
Additionally, the financial services sector is able to respond 'from a position of strength' to the present upheaval, which was not the case with the financial crisis that started in 2008.
“This means banks have a fundamental rôle in working closely with political institutions in helping families and businesses,” Goirigolzarri says.
“Nowadays, thanks to the hard work the banking community has put in all these years, the finance industry is not part of the problem; rather, it's in a position to be part of the solution.”
As well as a six-month stay of grace on repaying mortgage capital and personal and small business loans, Bankia intends to be 'more flexible' in taking commission payments from accounts – especially where these are set up for receiving customers' regular income payments, such as wages or pensions – and will temporarily cease charging its clients for withdrawals from cashpoints at other banks.
The latter is to encourage Bankia customers to draw their cash out as close to home as they can, rather than travelling to their nearest Bankia branch where this is some distance away.
Like most banks at present, Bankia is encouraging its customers to make use of internet and telephone channels for transactions or to contact staff – who are still attending to the public – and only use their physical offices where this is unavoidable.
These will still be open for that reason, says Goirigolzarri, who has praised Bankia staff for their 'commitment' and said he is 'proud' of their 'efforts'.
Related Topics
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