Sareb, the bad bank, will also have to shoulder its shoulders to help the most vulnerable families. The Government has included him among the companies that will have to apply a moratorium or 50% rent reduction for those tenants who are in financial difficulties due to the coronavirus crisis. This further complicates their situation after requiring a change in accounting regulations to suit them so as not to replace their capital without entering into dissolution.
The bureaucratic cost of renegotiating contracts will add to the problems with the capital deficit, which would force him to have to return to transform subordinated debt into equity were it not for the aforementioned exception. The financial situation is already quite complicated, as the 7.85% increase in losses which registered up to 947 million euros last year. And if you now have to cut rents in half or apply moratoriums, you will cut your 2020 income, leaving accounts even more messed up.
Article 4 of Royal Decree 11/2020 approved this Tuesday establishes that the lessee may request these measures when his landlord is "a company or public housing entity or a large holder". Sareb is considered semi-public, with 45% of its capital participated by the State through the Fund for Orderly Bank Restructuring (FROB) and also a large holder of housing as it has about 3,000 apartments for rent.
It will be the bad bank who chooses between the moratorium or the rent reduction, communicating its decision in a maximum period of 7 business days since the tenant has requested it. In any case, both measures will continue for the duration of the alarm state, with the possibility of extending up to four months if the vulnerability situation continues. In the case of moratoriums, the deferred amounts will be returned without any interest in the following three years.
Sareb is one of the companies with the most floors in Spain, along with other private entities such as Blackstone, which has 20,000 assets, and the Azora group, which has 7,000. The Royal Decree includes among the "large holders" of housing entities with more than ten urban properties, excluding garages and storage rooms, or a constructed area of more than 1,500 square meters. Therefore, they will also have to favor their most vulnerable tenants. The same as IVIMA and municipal housing companies in many cities, as they are publicly owned.
OTHER MEASURES IN THE MATTER OF HOUSING
The Council of Ministers also approved this Tuesday the suspension of evictions until six months have passed from the end of the alarm state. As explained by the vice president of Social Rights and Agenda 2020, Pablo Iglesias, the intention is that "nobody is left homeless during the crisis." Therefore, it has also decreed an extraordinary six-month extension for rental contracts that end during this period.
Those people who fall into a situation of vulnerability also have the option of availing themselves of a microcredit that the State will give without any type of interest and that can be repaid within a period of 6 years, expandable to 10 in case the difficulties are maintained. .
The Royal Decree establishes that a person is in a situation of economic vulnerability When you are unemployed, you have been affected by a Temporary Employment Regulation File (ERTE) or a reduction in working hours caused by the coronavirus. Also those self-employed who have seen their income reduced due to the paralysis of their economic activity due to this pandemic.
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