Code of Good Banking Practices of Minister De Guindos: from the restructuring of the mortgage to the payment in kind

The Minister of Economy, Luis de Guindos, presented last week a Code of Good Banking Practices that included, among other points, the dation in payment to liquidate the mortgage in cases of risk of exclusion. However, this “good bank manual”, which will be mandatory for the entities that adhere to it, includes interesting preventive measures that have gone unnoticed but that can undoubtedly be of great help for mortgaged with problems.

These are three points that aim to mitigate the pressure on the payer by trying to generate the least possible impact on the bank , that is, always keeping the payment in payment as the last option (since it is the most desperate, since no one wants to lose their home and the bank does not usually interest him either).

Restructuring of the mortgage

Restructuring of the mortgage

The first step to take a loan is to click PaydayNow website. When a mortgaged person meets the conditions to benefit from the code of good practices and is not yet in the process of execution, you can request a restructuring of the mortgage. This includes measures such as (1) lack of capital for 4 years (that is, paying only interest), an extension of the amortization period (up to 40 years) and reduction of the interest rate to Euribor + 0.25%.

Remove mortgage

Remove mortgage

If point 1 fails, this is the way to go. It is about requesting a withdrawal on the capital pending amortization, in order to make the mortgage viable, that is to say, that the quota does not suppose more than 60% of the total income of the family.

It is at this point that the bank will have to assume losses for the first time and take responsibility for its part of the blame for having granted mortgages right and wrong with dubious studies of risk and viability.

Payment in

Payment in

If none of the above points works, it is time to ask for the dation in payment. That is, deliver the home to the bank and thus disregard any residual debt.

As we have already said, this will not be possible if the requirements are not met (unemployment, less than 200,000 euros, single housing, etc.) and it will also become very complicated if the mortgage has a guarantee, since the bank will be able to go to it before to apply the dation in payment.

Affordable rental

In addition, in case of the consummation of the dation in payment, the mortgaged will have the possibility of staying for at least two years in the property paying an annual rent equivalent to 3% of the outstanding debt. That is to say, whoever is missing for paying 100,000 euros will be able to pay 3,000 euros a year to remain in the property despite having lost ownership of it. This would be equivalent to a rent of 250 euros per month.

In short, it is a good-looking reform, but we still do not have to sing victory: we will have to see (1) how many banks adhere, (2) how they apply it, and (3) what pressure the government has to enforce it.

For the moment, remember that in our financial forum you can comment on this and other issues. You ask, the HelpMyCash Community responds.


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Board approves decree of public prices in universities, freezing cost of grades for fifth year

Board approves decree of public prices in universities, freezing cost of grades for fifth year

Related imageSEVILLA, 11 (EUROPA PRESS)


The Government Council has approved on Tuesday the decree of public prices for the next academic year 2017/18 in the Andalusian universities, which incorporates as a main novelty the bonus of 99 percent of the credits approved in the first registration. The standard also equals the cost of the habilitative and non-habilitative master’s degrees, in addition to keeping the amounts of the Degrees frozen for the fifth consecutive year.

The bonus, which is applied for the first time in Spain, aims to bring the Andalusian system of university education to reference countries in Europe that have free or symbolic registration, such as France and Germany, and advance the equalization of higher education with the rest of basic public services (health or pre-university education among them) while the central government is being asked to make the system totally free.

In the press conference after the meeting of the Governing Council, the Minister of Economy and Knowledge, Antonio Ramírez de Arellano, explained that the decree will allow the next course to keep prices to a minimum, with a reduction in costs that will an important impact for family economies when facing higher education. Despite being one of the cheapest autonomous communities in Spain in absolute terms, Andalusia is the second most expensive in the country compared to the per capita income of its population.

The 99% bonus will be applied in degrees and masters to students of public universities in Andalusia who do not meet the requirements to obtain the scholarship from the Ministry of Education, Culture and Sports (MECD), which will be credited by signing a responsible statement. In this way, a student with good performance can study their degree by paying almost only the first course, with a total saving of 75% of costs, and make the master practically free.

The cost of an academic course of 60 credits in Andalusia amounts to 757 euros. With the applied bonus, the student who approves all the credits in first registration, between the June and September exams, the following academic year could save 749.4 euros. If you pass the four years of a degree with equal performance, this would be practically the cost of a single course and the aforementioned savings of 75%.

Regarding the master’s degrees, the bonus will be applied taking into account the credits approved in the first enrollment in the two previous academic years, always within the grade that gave access to it.

As a prerequisite for access, students must be enrolled for one year at an Andalusian university, so that students who start their undergraduate studies will have to register for the 60 credits of the first year and pay them. From there, 99% of the cost of each approved credit will be deducted. In addition, the student who is already in higher courses can immediately benefit from the measure, deducting the cost of the subjects passed in the first enrollment.

The Ministry of Economy and Knowledge is already working with Andalusian public universities in the implementation of the bonus within the ordinary registration procedure. The Board will compensate them for the loss of these revenues, an amount initially estimated at around 30 million euros.

The measure has had the unanimous support of the Andalusian Parliament and the Andalusian Council of Universities, a collegiate body of consultation and advice of the Board composed of the rectors and representatives of social councils, students and the Autonomous Chamber. It also has the approval of the Student Advisory Council.

The bonus will also apply in the case of studies carried out within student mobility programs, such as Erasmus, Seneca and others within the framework of the European Union, or those made through specific agreements between universities. Students who come from transfers of records from other national or foreign universities may benefit from the measure from the second year, as well as students with MECD enrollment scholarships who lose this condition throughout their studies.

Ramírez de Arellano has taken the opportunity to demand from the central government a national scholarship system that complements the income level of students, aligned with the main countries of the European Higher Education Area.


Image result for educationAlong with the bonus, the decree approved this Tuesday maintains as in the previous course the prices of the degrees and masters for all branches of knowledge, rejecting the possibility established by the central government to tax the most technical lessons. In this way the Andalusian Executive ensures that students can choose their studies according to their abilities and regardless of the level of family income.

The costs of the degree are frozen for the fifth consecutive year at 12.62 euros per credit in the first enrollment, in addition to equaling the price of non-qualifying master’s degrees with those that do qualify for professional practice, reducing them to 13.68 euros. In the same way, the amounts of doctorates (13.68 euros) and academic tutelage of the research period (60.30) remain as in the past year.

During the last three years the costs of the qualifying Master’s programs have remained practically unchanged and those of the non-qualifiers have been progressively reduced, whose prices now equalize to the downside. This measure is possible because the central government has reduced the lower limit of the price range for these studies. The Junta de Andalucía, which had been claiming for years, has applied it immediately.

The decree of public prices also consolidates social measures developed in recent years, such as the fractionation of tuition fees in up to eight installments; exemptions for victims of gender violence and for persons with disabilities; the gratuity in the first enrollment for the End of Degree Awards and the medals in scientific Olympiads, and the 70% of the second enrollment returns to those who pass a subject in extraordinary convocation.

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COMMUNIQUÉ: GoDaddy acquires Host Europe Group (1)

the world

independent businesses, today announced that it has entered into a definitive agreement to acquire Host Europe Group (HEG) for 1,690 million euros (1,790 million US dollars), including 605 million euros paid to selling shareholders and 1,080 million euros in net debt assumed. The transaction has been approved by GoDaddy’s board of directors and HEG shareholders and is expected to close in the second quarter of 2017, subject to the usual closing requirements and regulators.

HEG is currently owned by Cinven, one of Europe’s leading private equity firms, which acquired the business in August 2013. GoDaddy intends to integrate the majority of HEG’s business while exploring strategic alternatives for the managed hosting business HEG PlusServer, including a possible sale.

As the largest privately owned web service provider in Europe, HEG serves small businesses and web experts and has built a thriving business with more than 1.7 million customers. With strong positions in the United Kingdom and Germany, including brands such as 123Reg, Domain Factory, Heart Internet and Host Europe, HEG complements GoDaddy’s leading position in the United States and the growing international presence.

Combining GoDaddy’s global technology platform with HEG’s footprint in Europe will enable the rapid deployment of a wide range of products to customers and allow for better scale of product development and investments in the market through both companies. GoDaddy and HEG share a strong cultural emphasis on the needs of small business customers, supporting their product offering with consultative customer service that leads to high customer retention.

“GoDaddy has successfully expanded its international business to 56 global markets over the past four years,” said GoDaddy CEO Blake Irving. “HEG has built an impressive business that generates strong growth, high margins and industry-leading customer satisfaction, and by joining forces with HEG, we accelerated our expansion in Europe with the delivery of a broad range of cloud-based products, built on a unique global technology platform and unparalleled customer support to help small businesses and web designers succeed online. “

“In combination with GoDaddy, we see a remarkable opportunity for our customers

"In combination with GoDaddy, we see a remarkable opportunity for our customers

partners and the ecosystem of small businesses in Europe,” said Patrick Pulvermüller, CEO of the HEG group. “What stands out is the strategic alignment of the companies – both are aimed at empowering people to transform their ideas and bring them online.” Together GoDaddy and HEG will provide even more value to our customers and present new solutions to help their companies to succeed. “

Patrick Pulvermüller will lead the European operations of the combined company. It will inform Andrew Low Ah Kee, executive international vice president of GoDaddy. The European GoDaddy team will inform Pulvermüller.

HEG serves customers similar to GoDaddy’s customer base – that is, small businesses and web professionals who support them. HEG has consistently reported strong superior growth and cash flow and is on track to generate approximately $ 328 million in reserves and approximately $ 139 million in adjusted EBITDA in 2016. The purchase price of € 1,690 million (1,790 million of US dollars), represents approximately 11 times the estimated adjusted EBITDA of 2016 of HEG including anticipated annual synergies. Financing for the transaction has been committed by existing lenders to interest rates similar to the existing GoDaddy term loan.

HEG today includes the PlusServer brand that serves larger, more mature companies that require a dedicated field sales force and account management. PlusServer is a high quality company with a strong financial profile and world class management team. As its business model differs from GoDaddy, GoDaddy intends to explore strategic alternatives for the PlusServer business, which is expected to generate approximately US $ 92 million in reserves and US $ 41 million in adjusted EBITDA in 2016.

HEG also owns World Hosting Day and NamesCon brands and conferences, pillars in the web hosting and domain communities. GoDaddy will continue to independently operate these brands to invest in its continued growth.

HEG has offices in Germany, the United Kingdom, France, Spain, Romania, and Bulgaria.

HEG has offices in Germany, the United Kingdom, France, Spain, Romania, and Bulgaria.

GoDaddy does not provide reconciliations of non-GAAP projections to GAAP, because these reconciliations are not possible without unreasonable effort, and the presentation of such reconciliations would imply an inadequate degree of precision.


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