The bank has an exposure of 20,000 million euros to the areas affected by DANA and almost 500,000 outstanding loans. This is clear from the figures made public by the Bank of Spain in a statement, in which he shows his solidarity with the victims.
«The latest available data indicate that the exposure of the financial sector in the affected areas would amount to around 20,000 million euros, of which 13,000 would correspond to loans to households and 7,000 to companies, of which 60% are SMEs. Regarding the holders of said loans, the data relating to the postal codes of the affected areas indicate that 23,000 companies (90% SMEs) would be credit holders and 472,000 people», indicates the institution directed by José Luis Escrivá. Of those 472,000 people who have bank loans, just over 150,000 are for mortgages.
The Bank of Spain has reported that it is closely monitoring the situation in the area and the evolution with financial entities through “constant communication” with the banks themselves. “In all communications, the Bank of Spain has shown its maximum support to the entities present in the area, since they will be essential to overcome this difficult situation since they are the ones who best know the clients and businesses affected,” the organization added. .
Likewise, the institution has supported “the adoption of support measures and also that initiatives to alleviate the needs of citizens do not pose an excessive burden on credit institutions«. And they give advice on how action could be taken to avoid a hit to the banks’ accounts: »In this sense, a model analogous to the one applied during the pandemic should be opted for in which the support measures did not entail a reclassification of the credits.
At the moment, regarding aid, the central government has already approved a first aid package. It is a plan baptized as ‘Immediate response plan for the reconstruction and relaunch of the Valencian Community’ which consists of several phases and will involve a multi-million dollar outlay for the public coffers. Only the first tranche approved this Tuesday includes an amount of 10.6 billion euros. The plan drawn up by the Government consists of different stages and the first, the current one, is the one that declares a catastrophic area and implements the first aid measures.
The Ministry of Economy has announced the launch, through the ICO, of a line of DANA guarantees of up to 5 billion euros to provide liquidity to households, the self-employed and companies; financing that the banks will grant. “Through this line, citizens and companies will be able to advance the receipt of compensation that must be paid by the Insurance Compensation Consortium,” the ministry has indicated. In addition, both families and companies (with a turnover of less than six million euros) in the affected areas will be able to benefit from a moratorium on their loans, with or without a mortgage guarantee, of 3 months of the principal and interest and an additional 9 months of the principal. as agreed with the financial sector.
Beyond this, the Bank of Spain is monitoring the availability of cash in ATMs in the area that have not been damaged by DANA to ensure the provision of cash to the population at all times. And, furthermore, “extraordinary measures are being implemented to facilitate the exchange of banknotes and coins damaged by DANA.”
For the latter, related to the exchange of damaged money, “specific customer service windows will be set up in the Valencia branch, to which citizens will be able to go without the need for an appointment; The branch staff will be reinforced for this purpose and a specific exchange procedure will be organized, which will have the collaboration of local credit institutions. These will accept damaged cash from citizens, whether or not they are clients of the entity.
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