Spain's banks offer loan moratorium for households, businesses affected by floods

MADRID, Spain - Spanish banks have offered mortgage holders, the self-employed and small businesses affected by the floods in southeast Spain a three-month loan moratorium during which they will not have to make monthly instalments, the banking associations said.

At least 217 people died and many are still unaccounted for in the worst flooding in decades in Spain.

Banks are also in contact with the state-credit agency ICO to outline other measures to help families and companies cope with the economic impact of the floods, the associations said late on Monday.

In 2020 and 2021, the government extended maturities on state-backed loans to support mid-sized companies in the aftermath of the COVID-19 pandemic. It also extended a freeze on loan repayments.

A year later, the Spanish government also offered mortgage relief measures to help families cope with higher borrowing costs. — Reuters