The ground clauses could cost up to 10,000 million to banks – Pysn People and Society News

News of Spain

The bill for banks return the cash floor clauses mortgage it could range between 5,269 million and 9,700 million, depending on whether the cash until 2013, date of the cancellation of these clauses by the Supreme Court, or if you apply full retroactivity, according to International financial analysts is returned.

A high cost that has been part of the arguments of banks and financial institutions in the hearing that began Tuesday at the European Court of justice . The court has heard the arguments of financial institutions and customers affected, since it must resolve whether the retroactivity of ground clauses should start from May 9, 2013, when the Supreme ruled and quashed · the, or from the beginning of mortgage contracts.

In line with International Financial Analysts defense attorney BBVA ruled, one of the entities involved in the case, who pointed out that the difference between repay the amounts from 2013 or from the beginning it would be between “5,000 million and 7,000 million euros,” so he has warned that “the consequences of the judgment handed down are immense.” Both lawyers have argued that mortgage contracts with clauses soil no longer apply.

In addition, as assured the representatives of financial institutions, as CajaSur would have been required extension of rescue received Spain in 2012 if retroactivity in mortgage terms shall apply.

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the banks have argued that force her to return all overcharged for the clauses floor hACERIA a “systemic effect” force open “a new negotiation” of the Spanish rescue and that would have an impact on ” Spanish economy “and” on the Eurozone “. These arguments were supported report of the Bank of Spain , which is not public, and cited by the Europa Press agency.

For its part, the defense of those affected have denied the “systemic risk” for the Spanish economy in case of return. “The most that can happen, and I hope happens it is that [the banks] reduce their profit, however in no case a systemic risk,” assured the lawyers.

In addition, they argued “bad faith” that these clauses were applied to people who, in many cases, unaware that bound the mortgage contract. They have also freshened the Supreme Court, in its judgment, and indicated that the behavior of financial institutions on the clauses were “misleading”.

Late last year the position of the European Commission in the case, as an institution that ensures compliance was leaked Community legislation. Brussels shown for customers and esteem that should return the entire amount from the beginning of signing mortgages.

After the hearing, and it’s up to the Attorney General to give its opinion, which will be announced on July 12, according to sources explained the Court. Although The final decision will not come before the end of the year .

source Ara.cat