The change in mortgage tax that it transfers its payment to the bank will have the opposite effect to that expected by the Government: it will contract the credit and make it more expensive. This has been expressed by the European Commission in its last report evaluating the economic and financial situation of Spain, the tenth after our country left the country. financial aid program in January 2014. The document summarizes the conclusions of the team sent by the Commission and of which it is also a member of the European Central Bank (ECB), which visited our country on 4 and 5 October, in the days before the Supreme Court broke the controversy and will fail in favor of the bank and not the customer who will pay the tax of Documented Legal Acts (AJD).
"After some weeks of uncertainty, the Court confirmed that customers would still have to pay the AJD tax on the mortgage, confirming a 20-year practice. This final decision made it clear that the banks would not have to assume possible retroactive payments of such tax, which would have had a significant effect on the balance sheets of the banks. The government reacted immediately to this decision and modified the law. Now for the new mortgages will be the banks that will have to pay this tax. This new burden on the banking sector could have an effect on the new lending and on the fees or other costs that customers will have to pay, "the Commission warns.
In addition, the Commission sends a serious warning to the Sareb It records "liquidation of assets, both loans and real estate, slower than expected and the company continues to record losses". Further, «The company continues to include its objectives of the business plan ». As Brussels explains, "the company's margins, particularly on loans, decreased slightly compared to 2017, due to the low quality of the assets put up for sale and the increase in competition".
One of the reasons that the experts of the Commission point to as the cause of Sareb's budgetary failure is the Uneven recovery of the real estate market Spanish. "Real estate assets are often concentrated in areas with slower-than-expected price recovery. In addition, some legal and administrative procedures for converting loans into repossessed assets have been delayed, which could prevent their liquidation more quickly. Sareb's total revenues in 2018 amounted to almost 1.6 billion euros compared to the 3.8 billion euros reached in 2017 », the report highlights. However, the document also highlights the change in strategy put in place by the company's executives. "With a view to the expiration of the contracts with the" servicers ", Sareb plans to introduce a new asset management strategy," he says.
On the other hand, Brussels considers that the resolution plans of the banks that needed to receive community aid "are well on track", however, it does not rule out that some small entities could "face some challenges" in case the cushion of anti-crisis capital demanded so far rises.
And the challenges for the financial sector are not minor, especially because of the difficulties of doing business that entities currently face. «Although overall profitability in the banking sector is improving, banks are still under pressure due to low interest rates. The prolonged period of low rates has ended up affecting interest margins and to compensate for this effect some entities may be inclined to take greater risks when granting new loans. In this context, credit institutions and supervisors must guarantee certainsufficiently conservative credit standards », alert Brussels. In addition, we must not forget that the costs of litigation after some court rulings "could exert more downward pressure on profitability."
At the macroeconomic level, Brussels has highlighted the «Robust growth» of the country, although it points out the bad evolution of exports, which fell more than expected and had a negative contribution to growth. And it alerts of the risks for the growth, as much to national level as international, as well as of political decisions like the increase of the minimum wage. In particular, the Commission warns of "Lower overall and EU growth than expected, protectionism and trade tensions, oil prices and euro exchange rates higher than expected, internal and external political uncertainty, monetary policy and uncertainty regarding the impact of certain measures such as the proposed increase in the minimum wage ".