Spain introduces mortgage holiday

Spain became the first European country to introduce a mortgage holiday for the unemployed and pensioners yesterday. The moratorium could apply to up to 500,000 families, with a maximum eligible mortgage of 170,000 euros. Analysts are sceptical that the plan will make any real difference as the ‘numbers are moderate’ and they do not expect it to have a big impact on companies and markets. However, it may increase pressure on neighbouring countries to follow suit.