Overview

A new law in Spain aims to support mortgagors and control public spending as well as creating new financing mechanisms at central government level to enable local authorities to cancel the debts they owe to companies and independent contractors.

According to its preamble, the new law aims to boost economic activity and establish measures to protect the most vulnerable sectors of society from the financial crisis. The most significant measures come via support to mortgagors and incentives for real estate auctions and secondly control of public spending and refinancing of local authorities.