The Credit Debt Moratorium by COVID-19 as a Minimum Measure (La Moratoria De Deuda Crediticia Por COVID-19, Una Medida De Mínimos)
Regulacion Financiera, Revista de Derecho del Mercado Financiero, Working Paper 2/2020, April 2020
8 Pages Posted: 21 Apr 2020
Date Written: April 5, 2020
Among the measures adopted by the Spanish government to face the economic crisis caused by the state of alarm of COVID-19, the moratorium on credit debt stands out. With this measure, it is about taking a leap in time to overcome the break and restart economic life. It is not a social rescue as in the financial crisis of 2008, it is a measure of re-engagement in activity. It is about giving a break to the most affected debtors to overcome the impasse. This article analyses the measure, its scope and limitations, making some critical considerations. We are facing an urgent regulation carried out in a hasty manner that has had to be modified within a few days to fill gaps and complete its scope. It is a minimum measure, which banks must take advantage of to overcome this temporary standstill in economic life and which particularly affects credit debt.
Keywords: Moratorium, Mortgage Debt, Consumer Credit, COVID-19
JEL Classification: G15, G18, G21,G28, G32, G28, K22, M13
Suggested Citation: Suggested Citation