He has had to extend the payment facilities to 60% of the loans guaranteed by the State, after the extensions approved by the Government in March to give relief to companies and the self-employed in the face of the uncertainty of the pandemic.
In this way, the Cantabrian group has lengthened the expiration periods and the deficiencies to the business fabric for an amount slightly higher than 20,000 million. The Cantabrian group, since the ICO line was launched, has granted 33,900 million euros, which represents 27% of the entire program launched by the Executive.
Thanks to this measure, Santander, like all banks, has been able to contain delinquency, since it has meant an injection of resources for SMEs and the self-employed at a time of great difficulty due to the restrictions of the pandemic. So much so, that the default rate of the group chaired by Ana Botín for its business in Spain has dropped from 6.55 to 6.22% in the interannual rate, although part of this decrease is due to the increase in the credit portfolio, since which, for example, in the second quarter of 2021 has seen how the volume of insolvent financing has risen 57%, to 492 million.
The Government decided this spring to extend the grace period for ICO loans by twelve more months, until March 2022, and to increase their maturity from eight to ten years, and agreed on a Code of Good Practices for their execution, which has been Santander adhered. This financing, granted by the entities, has a .
Another of the initiatives that has facilitated the containment of delinquency in the sector has been the implementation of moratoriums both for business loans and for individuals in the mortgage and consumer segments. , especially those linked to the most vulnerable families and that are under the umbrella of the legislation approved by the Government.
moratoriums
Santander indicates that 92% of the total moratoriums have already expired. In the case of those granted to households in our country, for an amount of 9,800 million, 87% of them have already expired.
The Cantabrian bank reports in its semi-annual accounts that only 5% of the loans in which the moratoriums have expired present delays in their payments, a percentage that is practically similar in the national system.
All these factors, together with the recovery of the economy, have led Santander to improve its prospects for the coming months. In addition to not having made additional provisions against the pandemic, the entity does not rule out releasing endowments in Spain as long as these expectations are certified, as the CEO, José Antonio Álvarez, advanced at the press conference in .
Santander has already released provisions in some markets, such as the United States and the United Kingdom, due to a better behavior of delinquency than initially expected.
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