MADRID, Nov 25 (Reuters) - Spain's government plans to
extend by six months voluntary write-offs of state-backed loans
as part of a debt restructuring plan to help companies cope with
the COVID-19 pandemic, three sources with knowledge of the
matter told Reuters.
"The plan envisages prolonging haircuts on state-backed
loans from end-2022 to June of 2023 among other measures, and in
line with the recent extensions granted by the EU," a government
source said, adding that those could be approved as soon as in
the next cabinet meeting on Tuesday, although details were still
A set of measures aimed at helping companies cut excess debt
and boost solvency, including 3 billion euros ($3.36 billion) in
debt restructurings, was approved in March, embedded in a
voluntary code of practice to be implemented by banks.
The Economy Ministry declined to comment.
($1 = 0.8920 euros)
(Reporting by Jesús Aguado, editing by Andrei Khalip)