ong>ary effects of the war in Ukraine. She emphasized the need to address the concerns of the citizens and take responsible and rigorous decisions.
The disagreement between Calviño and Díaz over the mortgage plan has sparked a heated debate. While Díaz proposes the creation of a social mortgage bond to help families pay their loans, Calviño and the Ministry of Economy criticize the proposal, stating that it would transfer the burden to taxpayers and benefit the banks. However, they have expressed willingness to modify the plan and find a solution that benefits the citizens.
Numbers and statistics
The Ministry of Economy initially estimated that there would be one million potential beneficiaries of the mortgage plan, but the Bank of Spain lowered the number to around 200,000. The actual number of applications is currently at 9,000, according to the latest official figures. Díaz argues that relying on the goodwill of the parties involved in mortgage novations is too complex and calls for a mandatory solution.
The government has implemented various measures to alleviate the impact of rising interest rates on mortgages, including freezing and reducing mortgage payments for vulnerable families. However, there have been few requests for these relief measures so far, indicating that the economy is performing better than expected. The Ministry of Economy assures that they are prepared to address any negative impact and continue to find ways to support affected families.
Addressing social unrest
Díaz acknowledges the positive growth and employment data but highlights the social unrest caused by the widening gap between the inflationary effects of the war in Ukraine. She emphasizes the importance of addressing these concerns and taking action to alleviate the burden on the citizens.
The disagreement between the first and second vice presidents over the mortgage plan reflects the ongoing tensions and debates within the government as the general elections draw closer. It remains to be seen how the government will find a compromise and address the concerns of both sides.
Strain between Vice Presidents Nadia Calvino and Yolanda Diaz Resurfaces Ahead of General Elections
After a few months of relative dead calm, the closeness of the general elections has resurfaced strain among the first vice presidents, Nadia Calvino and Yolanda Diaz, due to the impact of rate hike of interest in the mortgages. The Minister of Labor and leader of Sumar, thus, has assured that the plan to help mortgaged in distress agreed by his partner in the Council of Ministers and the bank last November “is not working” for which he has proposed to create a bono to help families pay their loans. A measure that “amazes” to the Ministry of Economy, according to its sources, since it would mean the “transfer of rent of all taxpayers to the banks”.
In an APIE and UIMP course sponsored by BBVA, Diaz recalled Sumar’s recent proposal to create a social mortgage bond, which consists of transfer 1,000 euros to those mortgaged that meet certain characteristics (credit up to 10 years old and with up to 250,000 euros of capital). It would be endowed with 1 billion of euros in charge of bank tax created by the Government, which has an annual collection of about 1.5 billion of euros that are added to the general collection of the State (they are not used for a specific purpose, but to finance in general the measures deployed to alleviate the inflationary effects of the war in Ukraine).
“We don’t surprise that the banks want the cost of the measures to fall on the public sector. what we amazes is that this proposal can have support from someone who not be the PP which defends the banks interest. We cannot and do not want to return to the failed solutions adopted by the PP in the financial crisis. The proposals of both the PP (creating a fund to help the mortgaged, also endowed with the collection of the tax), with the creation of a fund like that of Yolanda Diaz, who really it benefits the banks”, Economy sources have criticized.
However, they have also opened the door to modify the mortgage plan at Calvino’s meeting with the bank on June 29, as the vice president did a few days ago: “we are not complacent. One has to take decisions thinking of the citizens, with responsibility and rigor”. The bank refuses to do so, as the president of the AEB, Alejandra Kindelán, reiterated this Tuesday.
Discussion of numbers
Yolanda Diaz, for her part, recalled that the initial forecast of the Ministry of Economy was one million of potential beneficiaries, while the Bank of Spain lowered the number of likely beneficiaries to about 200,000 and the “real data” of applications is 10,000 (The latest official figure is 9,000 with figures for March and the entities have just provided the Bank of Spain with more current figures). In this line, she has assured that during her time as a lawyer she intervened in many mortgage novations which led him to conclude that “if it depends on the goodwill of the parties, is Too complex” For this reason, it has opted for dialogue with the banks, but on a solution that don’t be voluntary.
“It is an urgent measure. we haven’t made it from the Government”, has made a veiled reference to Calvino’s opposition to adopting some measures proposed by the wing of United We Can of the Executive and his commitment to agree on a Code of Good Practices with the bank Along these lines, Diaz has also affirmed that he thinks “correct” that the economic vice president has urged the bank to move up the remuneration of the deposits but has downplayed it: “falls too short the urgency is to act on mortgage installments.
What are the advantages and disadvantages of freezing and reducing mortgage payments as a solution for vulnerable families in the wake of the financial crisis?
Wake of the financial crisis,” said sources from the Ministry of Economy. They argue that the government’s current plan, which includes freezing and reducing mortgage payments for vulnerable families, is a more comprehensive and fair solution.
The disagreement between Calvino and Diaz has sparked a heated debate within the government. Diaz believes that relying on the goodwill of banks to implement voluntary solutions is too complex and calls for a mandatory solution, such as the creation of a social mortgage bond. Calvino and the Ministry of Economy, on the other hand, criticize Diaz’s proposal, stating that it would transfer the burden to taxpayers and benefit the banks.
The Ministry of Economy initially estimated that there would be one million potential beneficiaries of the mortgage plan, but the Bank of Spain lowered the number to around 200,000. The actual number of applications is currently at 9,000, according to the latest official figures. This raises questions about the effectiveness and reach of the government’s measures.
While the government assures that they are prepared to address any negative impact and continue to find ways to
This article highlights the strain faced by vice presidents as a result of the mortgage rate hike and proposed bonuses. It sheds light on the challenges these individuals may encounter in managing their financial obligations, potentially leading to increased stress and anxiety. An insightful read amidst the ever-evolving financial landscape.
It is not surprising to see strain among vice presidents in times of increased mortgage rates and proposed bonuses. Financial uncertainties can create tensions, highlighting the need for better communication and support from company leadership.