Spain’s Banks Announce Loan Moratorium for Flood-Affected Households and Businesses

Spanish banks are offering a three-month loan moratorium to households, the self-employed, and small businesses hit by recent devastating floods in southeastern Spain. This measure allows affected borrowers to temporarily suspend mortgage and loan payments as they recover from the disaster, the country’s banking associations announced.

The catastrophic flooding, the worst Spain has seen in decades, has claimed at least 217 lives, with many still missing. To further assist affected communities, Spanish banks are working with the state credit agency ICO to develop additional financial relief options.

This moratorium follows Spain’s previous economic support measures, including extended loan repayment periods for businesses during the COVID-19 pandemic and mortgage relief in response to rising interest rates.