[Anonymous]

I’ve just read a post on Edward Hugh’s Facebook site that says plans are in the pipeline for Spanish banks to increase their bad debt provisions on unsold properties to 30%. The figure is currently 20% and was only increased to that late last year as detailed then in this article by Mark:

http://www.spanishpropertyinsight.com/buff/2009/10/30/bank-of-spain-to-double-provisions-in-move-that-may-drive-property-prices-down/

I’m pretty sure this will have a significant impact on the market as the banks will then be forced to shift their inventory at, what one must assume will be, reduced prices.

This is the first I have read of such a change. Has anyone else heard of this?[/url]

[Anonymous]

Just found the source, increase certainly is being discussed.

http://es.biz.yahoo.com/22022010/3/banco-espana-planea-endurecer-provision-inmuebles-banca.html

[Anonymous]

Yes, but the latest is the increased provision of 10% will be voluntary. That means nobody will do it, so just a waste of time.

Mark

[Author]

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