Spain Suicides Lead to Eviction Law

    MADRID, SPAIN - NOVEMBER 12:   A demonstrator shouts slogans during a protest against evictions outside the PP (Popular Party) headquarters on November 12, 2012 in Madrid, Spain. Right placard reads 'Stop evictions'. Spain's banks announced today that for the next two years they will suspend mortgage-related evictions of the most vulnerable people. The Spanish Banking Association (AEB) reacted three days after a woman in Barakaldo took her life just before she was due to be evicted from her home. A male homeowner facing eviction in Grenada committed suicide fifteen days earlier. There have been around 350,000 house evictions since Spain's property market crashed in 2008. The Platform for Mortgage Victims organisation has been preventing some evictions by blocking access to houses under threat of repossession.  (Photo by Pablo Blazquez Dominguez/Getty Images)

    Pablo Blazquez Dominguez / Getty Images

    In response to reports of suicides linked to foreclosures, Spain has introduced a new law to help protect families from eviction. Under the new rule, issued by royal decree, banks cannot evict families who cannot pay their mortgages for two years, and it applies to families who meet certain conditions, such as making less than $2,041 per month or families with small children. One expert at Deutsche Bank AG said “there seem to be loopholes which could be exploited, which in turn could finally trigger a rise in nonperforming mortgage losses.” Around 400,000 homes have been foreclosed in Spain since the end of the property boom five years ago—and there have been two suicides over eviction in the past month alone.

    Read it at Bloomberg