Spain's BBVA bank plans fire sale of toxic housing stock
01 August 2012 @ 14:00
Spain's second-biggest bank, the BBVA, said it would be accelerating its sales of toxic property assets, lowering prices as necessary. It has €8.7bn (£6.8bn)of real estate on its books including building land and thousands of built and half-built residential properties.
Most of that property is connected to developers who have been unable to repay loans since the housing market crashed four years ago. "We will adjust prices month by month to speed up sales," BBVA's chief executive, Angel Cano, said on Tuesday.
The Sabadell bank, which has absorbed the loss-making Caja de Ahorros del Mediterráneo (CAM) savings bank, recently said it would be selling off new properties at a 38% discount. Spain's largest bank, Santander, has reportedly dropped prices by 35% to 45%. Anecdotal evidence suggests discounts of up to 68% in some previously unsold promotions on the Costa del Sol.
Read the full article at the Guardian
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