Background information

The Council of Ministers approved in the Royal Decree 8/2020 a moratorium on the payment of mortgages for the first home of vulnerable families who have seen their income falling or are unemployed as a result of the coronavirus. The measure will be in force the same period as the Royal Decree (that is, one month), but at the same time they have left the door open to extend it if necessary. The financial sector was told in the morning that the moratorium could be extended to one additional month if necessary.

Content of measure

Vulnerability in relation to this moratorium is understood in the following terms:

• When the mortgage debtor becomes unemployed or, in case of being an entrepreneur or professional, suffers a substantial loss of income or a substantial drop in sales, at least 40%.
• When the total income of the members of the family unit does not exceed, in the month prior to the request for the moratorium the limit of three times the monthly Multiple Effects Public Income Indicator (hereinafter IPREM). This limit will be increased by 0.1 times the IPREM for each dependent child in the family unit or in case of family members with disability.
• When the mortgage payment, plus basic expenses and supplies, is greater than or equal to 35 percent of the net income received by all the members of the family unit.
• When as a consequence of the health emergency, the family unit has suffered a significant alteration in its economic circumstances. In particular, when the effort that represents the mortgage burden on the family income has been multiplied by at least 1.3.

Use of measure

There is no estimate on the number of persons / families who might benefit from this measure.

Target groups

Workers	Businesses	Citizens
Self-employed Unemployed Other groups of workers	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Company / Companies	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement as case not in social partner domain	No involvement as case not in social partner domain
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Unknown

Involvement

This policy measure does not belong to the labour relations domain.

Views and reactions

Both trade unions and employer organisations were supportive of this measure.

Sources

• 18 March 2020: Royal Decree-Law 8/2020, of March 17, on extraordinary and urgent measures to face the economic and social impact of COVID-19. (www.boe.es)