Bankinter will allow principal repayments on household mortgages that do not meet requirements in emergency decree to be deferred for up to four months
The bank approved this measure to help household liquidity in the current coronavirus situation and may extend it for up to 12 months in necessary cases.
The bank will grant this payment holiday to salaried employees who become unemployed, to those affected by a temporary redundancy schemes (in Spanish, ERTE), to any professionals, sole traders and employees in industries where operations have been halted due to extraordinary measures.
Bankinter is taking further action in its shock plan to help households to mitigate the effects of the unprecedented situation caused by COVID-19 on their finances. The bank has agreed to go further than the mortgage moratorium set out in the Royal Decree-Law of the executive branch of 17 March and will grant a payment holiday for repayments of mortgage principals to customer households that cannot meet the decree’s requirements.
Households will, thus, play a smaller monthly instalment on their mortgage, from which the amount corresponding to their principal will be subtracted for a period of up to four months. This may reduce their amount significantly.
This payment holiday on the principal may be extended to up to 12 months where necessary.
The bank is aware of the need households may have for liquidity during this particularly difficult time cased by the coronavirus pandemic. This is way it has decide to adopt this financial support measure.
Beneficiaries of this principal repayment deferral should be unemployed as a result of the current situation or affected by a temporary redundancy scheme. Professionals, sole traders and employees whose operations have been shut down by the decree of emergency measures will also be benefited.
Guarantees activated for credit lines to companies and sole traders.
Bankinter has also provided businesses and sole traders with a set of facilities as part of its shock plan. As of today, the bank has activated a line of guarantees secured by the Spanish State, the first tranche of which was approved yesterday by the Council of Ministers.
All customer companies and sole traders who meet the decree’s requirements may now apply for their credit lines processed to be covered by these state-backed guarantees. These measure also aims to relieve the working capital needs of small, medium and large enterprises under these exceptional circumstances.
Shock plan measures already approved.
Furthermore, as part of its shock plan, Bankinter has paid its customers’ pension five days early to also help families in need iwth their finances.
This comes on top of other credit measures for companies in place, like payment holidays on loans for certain customers or reverse factoring post-financing, in addition to grace periods and term extensions on leases for SMEs and sole traders.
These measures are part of others announced by the bank on Friday, like the option for companies to use pre-approved loans (intended to pay taxes and social security) for any purpose; or the option for companies to increase or reset unused limits of their multi-line financing, a product to combine all funding needs in a single credit line.