December 19, 2012 at 10:36 pm #57193
Latest figures show that 30.3pc of loans to Spanish developers have gone bad, which is astonishing, and you can bet that the real figure is higher still.
Mortgage loans to households, on the other hand, are only in default to the tune of 3.63pc, which sounds low to me, but they say it is the highest level on record. You can also be sure that the real rate is much higher.
All these bad loans were made with German savings…..
December 19, 2012 at 11:02 pm #114122
Mark, in my experience the house holders do all in their power to not to lose their home. Whatever the correct percentage I am sure it would have been much lower if the lenders showed flexibity with a number of borrowers.
The Spanish developers is a different story. How much of that amount has been creamed off by them by over valuation etc.
December 20, 2012 at 9:56 am #114127
Mark, I recently read that those bad loans to developers are on top of bad loans to corporate Spain, where Banks are in between a rock and a hard place, they dare not call in their loans, yet they dare not let these companies go bust, so they are extending the length of those loans as well as increasing the debt repayments. If they call them in, or eventually have to let them default, then ‘whizz bang wallop’ to the Banks who could themselves implode or someone further down the line if they themselves are underpinned, it’s a disaster waiting to happen! 🙄
It’s the old ‘ostrich head in the sand mentality’ hoping it will somehow go away 🙄
December 20, 2012 at 4:15 pm #114147
I only have a detailed knowledge of the tiny part of Spain I live in, but those numbers don’t seem right to me. Most, if not all of the developers have gone bust and the place is littered with repossessions.
Can the more prosperous north of Spain possibly distort the figures to such an extent?
December 20, 2012 at 8:00 pm #114149
I need to add this about Spanish statistics. I live in the place and love it, but with my eyes open.
The unemployment figures of 25% for adults, in my area, are totally false. Most people I observe work black and can’t work with contracts because they would lose their paro. It suits everyone, the employers who save on tax, the employees who work while drawing dole money, and the only losers are the government and who cares about them.
The same probably applies to Mark’s numbers.
December 21, 2012 at 10:33 am #114160
How big is your area, how do you know the adult unemployment rate of 25% is totally false? Probably means the figures are higher then if the ‘B’ money workers are not shown! 🙄
Why do you think the same applies to Mark’s numbers?
All of a sudden, you’re the expert are you? 😆
December 21, 2012 at 11:45 am #114161
Rocker is right. I see the same.
December 21, 2012 at 12:53 pm #114164
So why Mark did you post a percentage figure which you then bet was probably higher? Confusing! 🙄
You will see if you read my reply that I was agreeing with you, I bet the figures are worse too, a lot of figures that come out of Spain are dubious, ‘B’ money workers are not even shown on unemployment figures. Seems like you are now saying there isn’t 25% unemployment! Of course there will be pockets of higher and lower figures, it’s the average for Spain,:lol: Not sure what you mean 😕
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