The banks will apply three-month moratoriums on the loans and mortgages of those affected by DANA

The banking sector is preparing a three-month moratorium that can be extended for loans to individuals, the self-employed and small businesses affected by DANA, which caused catastrophic flooding in Valencia a week ago.

This was explained yesterday by the three main associations of the sector, AEB, CECA and Unacc, after a meeting of the sector with the head of the Economy portfolio, Carlos Body, who will be the one who will have to give legal articulation to the measure.

The initiative taken by financial entities is identical to the one they already carried out in 2021, after the eruption of the volcano on the island of La Palma. A year later, the bank had granted 3,227 requests for moratorium on loans linked to that eruption, for an amount of 133.8 million. In that case, the majority of them (69%) were mortgage transactions.

In the case of Valencia, there will be many companies and individuals who take advantage of this aid, because even though the information coming from that province is not yet complete, little by little a scenario is emerging in which losses are visible. millionaires Precisely, yesterday the insurance association Unespa said that this will be the “costliest climate disaster in the history of Spain” and the self-employed organization ATA revealed that some 54,200 companies and 51,000 self-employed workers work in the affected areas.

In turn, the banking associations also assured that they are in contact with the Official Credit Institute (ICO) to outline other measures to support the victims. It must be remembered that during the Coronavirus crisis, financing lines were launched that were backed by the State through the ICO, a measure similar to the one that is being outlined now.