Since the beginning of the current crisis economic and financial, of the governments major world economies have adopting various measures to mitigate the effects of the crisis and to try redirecting savings as far as possible. In the next few lines we show the main measures taken by the Government of Spain, with special focus on those designed to boost real estate sector and stimulate credit banking.
Starting with the real estate sector, as important in our economy since it represents around 18% of GDP national, we have to go back to last summer for the first measures to revitalize the sector. In late July 2008 it was announced that the Government allocated 300 million euros to buy private land to spend on VPO, undoubtedly one of the major challenges of the Government to facilitate the access of citizens to housing. This was entrusted to the Public Entity Business Soil SEPES, which was assigned a term of 4 years for action to undertake this initiative.
Together with the earlier announced a new line of credit that will provide the Institute of Official Credit worth 3,000 million euros. This action is twofold, On the one hand seeks to encourage the hiring and secondly, to help businesses to refinance its debt. In this way developers who wish to benefit from these aid may extend the deadlines for their loans for housing construction change them into the rental market for a certain period of time.
The latest measure is adopted last December 9. This is the adoption of the Draft Law which Listed Companies to regulate Investment in Real Estate (SOCIMI). This new instrument, similar to the Anglo-Saxon REIT, aims to essential to continue the momentum of the rental market in Spain, to facilitate citizens' access to housing, increase market competitiveness Spanish stock market and boost real estate. Moreover, this figure allows the small and medium shareholders invest in real estate assets in a professional manner, with a diversified portfolio of assets and have to bear the cost of acquisition of these assets, enjoying the first when a minimum return, by levying a dividend year. It also will have important tax benefits.
Finally, there is the recent Plan Housing 2009- 2012. This plan is to stimulate the sector and ensure citizens' access to housing. There is also expected to highlight actions to improve energy efficiency and use of renewable energy, both in cases of new construction in the rehabilitation of homes. This Plan Housing is part of the appeal Plan E (Spanish for the Stimulus Plan for Economy and Employment) announced recently by the government.
As for the financial sector and credit banking undoubtedly one of the great affected by the crisis, many have been measures in recent months have been conducted to try to recover market confidence and revive the economies in terms of credit and Financial. In October 2008, the European Union announced a package of measures called the Plan of Action Concerted of euro zone countries, which should be developed by those countries. Spain led to the Measures Urgent Financial has now been summarized in the plan and before referred.
The most notable are the following:
- Responsible for the Acquisition of Assets Finance: A fund has been established with objective of providing liquidity to institutions credit and thus support for the Financing of businesses and families. The action is intended to accomplish through the acquisition of assets of the highest credit quality and this has given this fund with 30,000 million euros expandable to 50,000 funded through of the State Budget.
- Endorsement of the State to new releases debt of credit: This is a measure intended to strengthen credit quality of debt issues and the guarantee of such emissions. The only costs that bring these guarantees are those arising from the risk assumed by the state in each operation and although their release was provided to 15 December 2009, amounting to a maximum 100,000 million, is planned to continue this system of guarantees during 2010 and are planned An additional € 100,000.
- Increasing the coverage of the Fund Deposit and Investment: The plans in line with most European Union countries, to raise protection offered by the Fund and Guarantee Deposits up to 100,000 euros per share and entity to bring greater security to retail investors on the safety of accounts and deposits, check strengthening security and uncertainty avoid situations of collective panic would be a disservice to the current situation.
- Authorization to increase the capital of credit: This is a exceptional through which authorizing the acquisition of the securities issued by credit residents Spain needs to strengthen its resources themselves and request it.
Many of these measures have not been free from controversy and have been accompanied by other charges and taxes, such the reduction in the taxation of directors and shareholders of the entities financial returns when they furniture capital of their own institutions in so that, with retroactive effect from on 1 January 2008, the yield taxed at 18% and not the marginal rate corresponding to these taxpayers.