Spain already witnessed one of the most spectacular housing bubbles and busts so far this century. As pressures in the mortgage market begin to grow, the government and banks are desperately trying to avoid a rerun. 

Following weeks of negotiations with bank associations and the Bank of Spain, Spain’s government has authorized a package of relief measures for the country’s most vulnerable mortgage holders. On Tuesday, the Sanchez government approved measures it said would cushion the blow of rising mortgage costs for more than 1 million households. The measures are subject to final negotiations with banking associations, which have a month to sign up ahead of their scheduled implementation next year.

As the FT pointed out Tuesday, Spain is one of the first European countries to introduce emergency measures to blunt the impact of rapidly rising interest rates on families already struggling with soaring inflation:

Spain is especially vulnerable to

Keep reading this article on Naked Capitalism (Yves Smith) - Blog.

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