For families earning less than 25,200 euros
Help also for households earning less than 29,400 euros
Banks have concerns about higher provisions
Measures include grace periods, extended repayments periods
Plan to be finalised on Tuesday after talks with banks

MADRID, Nov 22 Reuters The Spanish government and banks have agreed in principle on mortgage relief measures such as extending loan repayments for more than one million vulnerable households and on help for middleclass families, the economy ministry said on Monday.

The new measures are expected to be approved at a cabinet meeting on Tuesday pending final negotiations with banking associations, the ministry said.

The Economy Ministry did not provide details on the potential cost to lenders and the degree to which banks may have to set aside more provisions in the future remains unclear.

Yet nonperforming loans at Spanish lenders as of August stood at nearly record lows of 3.86, far below the all timehigh of 13.6 of December of 2013.

In Spain, around threequarters of the population are homeowners, with most opting for floatingrate mortgages which are exposed to interest rate rises.

The planned measures are part of a wider package of support to help ease cost of living pressures which includes a rebate on fuel costs and windfall tax proposals . Other countries, such as Hungary, Portugal, Poland and Greece, have approved different forms of mortgage support.

In Spain, banks will provide mortgage support for…