BARCELONA- The Spanish region of Catalonia ordered on Tuesday that rents be cut by half for businesses such as bars and restaurants that have been told to close due to the pandemic, if no prior agreement has been reached between tenants and landlords.
The decree, approved by the regional government, seeks to help businesses, including bingo halls, casinos and beauty salons, which have been shut across the region since Friday for at least 15 days amid a surge in coronavirus cases.
Catalonia is, after Madrid, the second-worst hit region in COVID-hotspot Spain.
The decree states that if in one month tenants have not reached an agreement with landlords to reduce their monthly rent, it will automatically be lowered by 50% from the day the tenant notified his or her desire to negotiate, Catalan government spokeswoman Meritxell Budo told reporters.
The discount would apply only for as long as the business is obliged to staye closed due to the health crisis.
"The goal is to avoid the closure of businesses, the loss of jobs, and legal battles," Budo said, adding that the government did not rule out eventually helping landlords affected by the rent cuts.
Businesses that remain open but were forced to reduce their allowed occupancy will have their rents cut by the same percentage that they had to curb their capacity, such as 50% for gyms and 70% for shops.
The regional government also approved on Tuesday 40 million euros ($47.22 million) in grants to businesses forced to shut, as well as guarantees of 20 million euros.
($1 = 0.8472 euros)
(Reporting by Joan Faus Editing by Ingrid Melander and Gareth Jones) ((joan.faus@thomsonreuters.com;))
