- July 5, 2013 at 6:49 am #57664
SPI News FeedParticipant
Moody’s latest report on the Bank of Spain concludes that Spanish financial institutions’ involvement in real estate continues to be complicated.
The ratings agency’s predictions for Spain are that mortgage delinquency rates will continue to rise, property prices will continue to fall and, through this process, the banks’ real estate assets will carry on deteriorating.
Moody’s also notes that the recent developments regarding the ‘clausula suelo’ (base clause of mortgages), which have been ruled illegal, will hit Spain’s banks hard at a time when they are also having to contend with extremely low interest rates.
The agency believes that Spanish banks will see a continuing devaluation of their assets throughout 2013 and 2014 which will offset any possible gains made through a more general economic recovery.
- July 5, 2013 at 8:15 am #113391
Strangely enough, I rather agree with this news and think others may do as well despite it’s negativity 😉
- July 5, 2013 at 8:23 am #113370
Not sure about the prediction that house prices will continue to fall….didn’t we have a few on here recently who claimed the bottom had been reached 😕
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