Information note on the application of moratoriums on loans to people affected by earthquakes and volcanic eruptions on the island of La Palma until December 31, 2021 (119 KB)

1.02.2022

Information note on the application of moratoriums on loans to people affected by earthquakes and volcanic eruptions on the island of La Palma until December 31, 2021

This information note contains information on the application of the legislative moratoriums which provided for the suspension of interest and principal repayments on mortgage and non-mortgage loans granted to individuals and businesses affected by the Cumbre Vieja volcanic eruption on the island of La Palma.1 The information provided covers the period from the approval of the measure in early October last year to 31 December 2021.

In December, the number of files submitted by borrowers increased by 346 (13%), the files accepted increased by 250 (14%) and the outstanding balance in euros of suspended loans increased by €7.6 million (10 %) compared to the overall figure at the end of the previous month. In December, the rate of increase in these figures slowed down compared to the first two months of the deployment of the measures.

The cumulative figures up to December 31 can be summarized as follows (see Table 1 below):

• As of December 31, banks had received 3,028 moratorium requests, of which 2,039 had been approved and 953 were being processed. The number of applications refused has hardly changed, with 36 rejections against 33 until the previous month.
• Applications received for mortgage loans continued to represent approximately 30% of the total.
• In terms of amounts, the outstanding balance on suspended loans

amounted to 81.6 million euros, of which 65% mortgage loans.

• The average outstanding amount of suspended loans is €101,500 for mortgage loans and €18,700 for non-mortgage loans.

1 See Title IV, Chapter 2 of Royal Decree-Law 20/2021 of October 5, 2021, adopting urgent support measures to repair the damage caused by the volcanic eruptions and for the economic and social reconstruction of the island of La Palma.

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S Other service activities

R Arts, entertainment and recreation

Q Human health and social work activities

P Education

N Administrative and support service activities

O Public administration and defence; compulsory social security

M Professional, scientific and technical activities

L Real estate activities

K Financial and insurance activities

J Information and communication

I Accommodation and catering activities

H Transport and storage

G Wholesale and retail trade

F-construction

D Distribution of electricity, gas, steam and air conditioning

Water supply

ActivitiesEconomic

NationalSpanish Classification

Outstanding loans for which payment has been suspended

C Manufacturing

on the island of La Palma

Number

Moratorium requests submitted by borrowers Moratorium requests granted

Moratorium requests rejected

Moratorium requests have yet to be processed

Bbeneficiaries

Browers

salaried workers

Self employed(entrepreneurs or liberal professions) Legal persons

gguarantors

salaried workers

Self employed(entrepreneurs or liberal professions) Legal persons

Loans for which payment has been suspended

Loans for which the borrower has requested that the moratorium be recorded in a notarial deed

Self employedand Corporationborrowers benefiting from the moratorium, by Spanish national classification of economic activities

A Agriculture, forestry and fishing

B Mines and quarries

Table 1. Information on moratoriums on loans to people affected by earthquakes and volcanic eruptions