The Spanish government announced the launch of a mortgage deferral measure to aid unemployed, old-age pensioners and self-employed borrowers struggling to pay their mortgages. Although the move could potentially bailout a significant number of struggling homeowners, there could be a potential downside for existing Spanish RMBS deals.

"If we assume that the reported government estimates of 500,000 borrowers end up using the scheme and they all defer the maximum >500 ($625) a month from day one, the total guaranteed deferred payments would amount to >6 billion or some 2.2% of Spanish GDP over two years," Deutsche Bank analysts said.

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