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SPANISH BANKS ENCOURAGED TO SELL PROPERTY IN SPAIN
Spanish Property / 2011-12-24 10:46:39
Spanish banks are being encouraged to sell their property in Spain, according to Spain's new Conservative (Partido Popular) Prime Minister, Mariano Rajoy.
Mr Rajoy has acknowledged that it is essential that the country begins to understand the true value of the so-called toxic assets which are currentkly being held by the country's financial institutions.
The Prime Minister is quoted as having said, "We must clear up doubts about the value of certain assets, especially in real estate, which make access to the markets for the financial sector more difficult and also damage the credibility of our public debt."
It is thought by some analysts that the Bank of Spain is considering the possibility of establishing a "bad bank" which will be used to deal with all the toxic assets. Doing so will allow Spain to reduce its exposure to around 4% of GDP - the target set by the European Central Bank.
Spain's property market has seen the value of homes fall substantially, with the most recent data published by Tinsa showing the price of property in the nation has fallen by eight per cent between November this year and the same month in 2010.
However, the outlook for Spanish property is beginning to look positive with more constructors beginning to speculate on growth in 2012 and 2013.
Tags: Spanish Property, Propertyportal
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