December 02, 2008
Unicredit offers mortgage relief in Italy
The Associated PressItaly's largest bank Unicredit said Tuesday it will suspend mortgage payment requirements for 12 months without penalties for homeowners in financial difficulty.
Unicredit said 260,000 homeowners whose income was below euro25,000 ($31,520) at the time they took out the mortgages would be eligible for the relief in case of job loss, divorce for couples with children or the death of a titleholder.
The eligible pool comprises 30 percent of Unicredit's mortgages, the bank said.
Italy has entered a recession, and with the economic slowdown hitting some of the country's most important industries, including tourism and autos, economists are expecting layoffs. Consumer spending already is down.