Spain Plans 2-Yr Mtge Grace Period For Low-Wage Grps

[ixus]

EDIT: Please keep this in Central Bank, it is economic news rather than property.

uk.reuters.com/article/marketsNe … 6620081103

MADRID, Nov 3 (Reuters) - Spanish Prime Minister Jose Luis Rodriguez Zapatero said on Monday the Socialist government would provide 170 million euros ($219 million) of aid to kickstart Spain’s ailing labour market.

Among the measures, Zapatero said the government would provide a 1,500 euro annual payment to employers for every new worker with a family. (Reporting by Jason Webb; editing by Ben Harding)

forbes.com/afxnewslimited/fe … 38232.html

MADRID, Nov 3 (Reuters) - The Spanish government will allow unemployed workers to delay making half their mortgage payments for two years, Prime Minister Jose Luis Rodriguez Zapatero said on Monday.

The measure, which will also apply to pensioners with families to support, could benefit up to 500,000 families, Zapatero told a news conference announcing measures to reduce the impact of the economic crisis on the less well-off.

The government will guarantee mortgage payments postponed under its moratorium, Zapatero said, adding that the maximum mortgage eligible will be 170,000 euros ($219,000).

He also announced a 1,500 euro subsidy for companies to hire unemployed workers with families as part of a 170 million euro package to stimulate the struggling labour market.

‘The government’s top priority in these difficult economic times is assisting workers and families in most difficulty,’ Zapatero said.

Unemployment in Spain hit a four-year high of 11.3 percent in the third quarter – the highest rate in the euro zone. The number of Spaniards out of work rose by over 800,000 in the 12 months to end-September to 2.6 million people.

Nicolas Lopez, head of analysis at brokerage M&G Valores, said the measures would have little effect on the overall economy, which the Bank of Spain last week said contracted by 0.2 percent in the third quarter of the year.

‘The numbers (in terms of money) here are moderate, so I don’t think this will have such a big impact on companies and markets,’ Lopez said.

Other government measures to attack the crisis have included a 38 billion euro fiscal stimulus package, the creation of a fund worth up to 50 billion euros to buy assets from the banks and state guarantees for up to 100 billion euros in new bank debt both this year and next.

tradethenews.com/forex-news/ … ory/486160

SP) Spanish PM Zapatero: Pledges to pass a temporary moritorium on payments on around half of mortgages; will offer a grace period on mortgages for troubled families

• The moratorium will cover mortgages up to €170K, aid more than 500K workers.
• To establish €1.5K annual subisidy for employers hiring workers with families
• Govt will guarantee mortgages paid under the moratorium.
• Measures will provide €2B in liquidity for families

[HouseBuyer]

runs to stockbroker to short Spanish stock market

[ixus]

Wouldn’t be surprised to see FF following something like this.