Banks being forced to cut value of properties on their books

Spanish Property Insight Forums Spanish Property Forums Real Estate Topics, News & Discussion​ Banks being forced to cut value of properties on their books

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    • #56487
      Chopera
      Participant

      …by the new Spanish government.

      Well so it says here (in Spanish):

      http://www.idealista.com/news/archivo/2012/01/11/0380433-el-gobierno-impondra-un-duro-recorte-a-la-banca-en-el-valor-de-sus-inmuebles?xtor=EPR-76-%5Bboletin_20120113%5D-20120113-%5Bnoticias__01%5D-%5B%5D-%5B%5D

      Talks about chopping 30% to 50% off the values of property on the banks’ books, up to 80% off urban land, and nearly 100% off “rustic” land 😯

      I’ll believe it when I see it, but it could be time to get the popcorn out!

    • #107510
      Anonymous
      Participant

      The million $ question is will they reduce the price or will it be another fudge. If the Banks reduce the prices & with the latest strenght of the £ we could be in business. !!!!!!!!!!!!!!!!

      I for one will not shoot the messanger.

    • #107512
      katy
      Blocked

      If they reduce the prices most spanish banks will need a bail out. According to Sur Spain has just been downgraded 2 points by S&P.

    • #107514
      Chopera
      Participant

      @katy wrote:

      If they reduce the prices most spanish banks will need a bail out. According to Sur Spain has just been downgraded 2 points by S&P.

      They seem to be saying that any banks unable to take the hit would be merged. I’m not sure how merging banks holding dodgy assets solves the problem though – you just end up with an even bigger bank holding even more dodgy assets.

    • #107515
      Anonymous
      Participant

      Katy: They will need a bailout at some stage as no bank can carry on with non peforming assets.

      Chopera: That will be called the bad bank by defaault as Rajoy had earlier stated that no bad bank will be set up

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