In response to Euribor’s sharp rise, ongoing talks between banks and authorities aim to shield households from mounting mortgage costs. CaixaBank has proposed freezing the quotas for certain loans within the group for twelve months, a plan reported by multiple financial outlets within the Prensa Ibérica network to EL PERIÓDICO. Under this proposal, the amounts susceptible to increase would be addressed at the loan’s end life, avoiding an extension of the term, while the associated mortgage costs and business-related expenses for the customer would be bundled into the revised figures.
Other assets are not rejected outright. CaixaBank’s approach is to incorporate flexible measures within an overall range, including periods of non-payment, various discount schemes, potential flat-rate adjustments, and extensions where appropriate. These options would be implemented depending on the borrower’s profile and current status, after a careful review of each individual case. Some banks have even contemplated a sectoral two-year moratorium on capital payments, similar to relief offered after the pandemic, though many banks preferred to reserve provisions that would allow deferral rather than tip the balance too far. Since the previous moratorium ended, mortgage payment difficulties have continued for many households.
One of the key aspects of the negotiations is identifying who stands to benefit from these adjustments. Since 2012, a Good Practices Code has guided support for vulnerable mortgages, generally focusing on households whose annual income is around 24,318.84 euros and where mortgage commitments represent a significant share of the family budget. In practice, eligibility has depended on the annual income relative to mortgage burden, with overpayment thresholds around 50 percent of income.
new requirements
Several proposed criteria would be clarified for families potentially affected by the Euribor increase. This issue goes beyond bank discussions; it intersects with rising household expenses such as energy, heating, and everyday essentials, which reduce disposable income and therefore affect payment capacity.
The prevailing idea today is to approve a plan that resembles a reform rather than a complete overhaul. The goal is to reinforce compliance with the 2012 Good Practices Code or a revised protocol adopted voluntarily by institutions. The new measures appear to respond to a temporary spike in inflation and interest rates, aiming to relieve vulnerable mortgage holders regardless of broader economic conditions.
in the coming weeks
Banks, employers, and the wider economy continue discussions and exchange documents as plans evolve. While positions across the sector remain varied, there is general consensus that a formal agreement should emerge soon. Nadia Calviño, the vice president of Economics, stated after presenting a plan to stabilize liquidity that the government and the banking sector will keep working in the weeks ahead to mitigate the growing financial burden faced by mortgage borrowers due to the ECB’s monetary policy changes that have dampened inflationary pressures.
Calviño emphasized that the negotiations should first determine where vulnerable households stand. The mechanisms currently in place are being reassessed in light of the rapid rise in Euribor and related interest rates, which have intensified concerns about family solvency. She stressed that the context is very different from previous crises and that rapid actions may be necessary if conditions call for it. The goal is to monitor asset quality and consider additional measures that could be deployed to address unforeseen challenges as they arise, ensuring the broader stability of households without creating new vulnerabilities.
Note: All parties acknowledge that the situation is evolving. The focus remains on protecting families while maintaining financial system integrity, with ongoing assessments and potential adjustments as new data becomes available. (Source: Prensa Ibérica reporting on evolving bank plans and government coordination)