On April 13th, 2020, the Syndicate examined the Draft Law on new exceptional and urgent measures for the health emergency situation caused by the SARS-CoV-2 pandemic, which was sent by the M.I. Goverment’s head.

Exercising its powers, the Syndicate admitted said Project for processing under the emergency procedure and ordered its publication in the Bulletin of the General Council under number 22/2020, granting a deadline to present the appropriate amendments, which ended on April 14, 2020.

On April 18, 2020, the General Council approved the aforementioned Project, introducing those amendments approved by majority and consequently modifying the initial content of the Bill.

Next, we will present part of the content of the Bill that has been substantially modified due to the amendments:

1.- Right to request and obtain shortfalls in mortgage loan or personal loan installments or an extension of the amortization period of mortgage loans in order to finance the acquisition of your habitual residence or your own vehicle.

The accepted amendments have meant an expansion of the factual assumptions initially foreseen, adding personal loans within the scope of the measure.

2.- Recipients of the measure and requirements for its application:

  • Employees affected by the temporary suspension measures of the employment contract, as long as it is proven that the monthly amount of the amortization fee, plus the basic expenses and supplies of the family unit, is equal to or greater than 30% of net income resulting from the suspension of the employment contract.

  • Salaried employees who receive aid for involuntary unemployment.

  • Self-employed affected by the compulsory suspension of their economic activity, or subject to a guard or permanence regime.

  • Individuals who own business premises, and up to a maximum of two homes for rent or exploitation, affected by the reduction in rental income, provided that the monthly amount of the amortization fee, plus the basic household expenses and supplies, is equal to or greater than 30% of the net income resulting from the reduction of rental income.

The accepted amendments have meant a reduction in the percentage required to comply with the legislative requirements to be able to be entitled to the deficiencies or the extension of the repayment terms of the mortgage loans and credits. Initially, it was foreseen that the quota could not exceed 35% of the net income resulting from the reductions or the suspensions, while by means of the amendments said percentage is reduced to 30% of the net income.

The accepted amendments have meant an expansion of the recipients of the measures, including those individuals who own and lease a business premises or up to a maximum of two homes, as long as they have been affected by the reduction in the rent of rental.

Obtaining a monthly benefit for those who carry out an activity on their own.

  • Recipients of the measure:

– People who carry out an activity on their own that has been obligatorily suspended by government decree.

– People who carry out an activity on their own that has been voluntarily suspended.

– People who carry out an activity on their own subject to a guard and permanence regime by government decree.

  • Quantification of the benefit:

– Quote of 25%: right to 541.67.- €

– Quote of 50%: right to 1,083.33.- €

– Quote of 62.5%: right to 1,083.33.- €

– 75% quote: right to 1,083.33.– €

– 100% quote: right to 1,083.33.- €

The acceptance of the amendments has meant an expansion of the recipients who are entitled to a benefit. Thus, initially those people who carry out an activity on their own and who did not contribute at least 50% to the Andorran Social Security Fund (CASS), were not entitled to any type of benefit. The modification of the initial text has meant that those who carry out an activity on their own and who contribute 25% to the CASS, have the right to a benefit to mitigate the effects of the health crisis.

The Law on new exceptional and urgent measures for the health emergency situation caused by the SARS-CoV-2 pandemic is currently not in force.

The Law will enter into force at the time of its publication in the BOPA, after having been sanctioned and promulgated by the Co-Princes, at which time we will publish a new news item informing.

If you need more information or assistance, thank you for contacting us at mail@ramentolpujol.ad or calling us at + (376) 810 010.

 Cordially.