Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 78

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 4
Chunk 78
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 (relating to credit agreements for residential immovable property). In 2019, Law 5/2019, of March 15, regulating real estate credit agreements (“Law 5/2019”) was passed, transposing Directive 2014/17. It applies to individuals, whether or not they are consumers, and sets limits on default interest, early maturity and early repayment fees, and provides a comprehensive framework of pre-contractual information provisions. Law 5/2019 also requires that a notarial act shall be granted prior to signing a residential credit agreement in which the notary verifies that the bank has fulfilled all of its legal pre-contractual information obligations and that the borrower has understood all the clauses.
Additionally, specific regulations applicable to mortgage loans for vulnerable consumers are in effect. Royal Decree-Law 6/2012 (“CGP 6/2012”) establishes a Code of Good Practices to support debtors facing severe financial difficulties. Measures include a five-year grace period for principal repayment, reduced interest rates during this period, and loan term extensions of up to 40 years. If refinancing is not viable, debt reduction or dation in payment (handing over) of the mortgaged home to cancel the debt is possible.
Royal Decree-Law 19/2022 expanded CGP 6/2012 to include more types of debtors but reduced the grace period to two years and allowed loan term extensions of up to seven years. It also introduced a new Code of Good Practices (“CGP 19/2022”) to mitigate rising interest rates. Eligible debtors can extend the loan term by up to seven years (not exceeding 40 years) with options such as freezing installments for 12 months or converting to a fixed interest rate.
 CGP 19/2022 was extended until December 31, 2025, nationwide, and until June 30, 2026, for residents in areas affected by the late 2024 floods (DANA).
Instant Payments Regulation
Regulation (EU) 2024/886 or the European Parliament and of the Council of March 13, 2024 amending Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives 98/26/EC and (EU) 2015/2366 as regards instant credit transfers in euro requires all payment service providers that offer regular transfer services to offer consumers and businesses in the European Economic Area (EEA