Majority won't qualify for rent or mortgage aid

There is no confirmed data on how many people have already arranged to defer payment with banks, but as yet no-one has benefited from the microcredits because the Government has not clarified how the aid will be managed.

A few weeks ago it was announced that financial help from the ICO would be available for those affected by the coronavirus crisis to help pay mortgages and rents for six months. The money can be repaid within six or ten years depending on the circumstances and some tenants will be offered a 50% rent reduction or debt restructuring within three years.

No evictions

Tenants can also take advantage of the public aid line and evictions are suspended for one year.

The 1,200 million euro cash injection promised by the Central government has yet to materialise.

The problem is, family units must earn less than 1,600 euros a month to qualify for aid, which means that the majority of the 9,576 people who’ve enquired about financial help in the Balearic Islands, will not qualify.

The CEO of Habitat, Eduardo Robsy, has asked the Central Government to make these conditions more flexible so that more people can get financial aid and says they’re waiting for confirmation of what people will have to do to receive it.

At the moment the only requirement that’s been confirmed is that they must have been affected by an ERTE or be able to prove a decrease in income that prevents them from paying their rent or mortgage.

Natalia Bueno, President of Real Estate Agents says a growing number of property owners and tenants have agreed rental discounts of between 20% and 50%.

Solidarity chain

The President of the APIs has appealed to the "chain of solidarity and empathy" at very difficult times for many people who have lost their jobs or had their wages cut.

She also said that, despite the complicated circumstances, foreign buyers are still enquiring about buying real estate on the Island remains after the State of Emergency ends.