El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche.
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Legal tip 628. Spanish Banks can cover losses of developers
03 November 2011 @ 10:35

Ordonez, governor of Bank of Spain, states Banks can cover losses of developers.

The good new is that it is not just the spanish Ordoñez but also the European Banking Authority (EBA) who back that the Spanish financial sector has provisions for real estate risks of approximately 55,000 million of Euros, including the anti-crisis savings.

The mainstays of the system are healthy. There are problems with some finantial entities which are identified, limited and manageable.

The report of Bank of Spain focuses again on real estate exposure. Sovereign risk is not the enemy to fight in Spain. PP shares this vision.

It is the same vision Paul de Grauwe had bak in 1998 before the Euro was coming in ( you can read his wise, kind of prophetic announcement here)

At least, we know what the illness is and can find the right treatment, this is another good new.

See you in Spain,

Maria

"Vista de Coin Cuesta La Reina", Malaga, Spain, by Miradas de Andalucía, at flickr.com

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2 Comments

Max! said:
06 November 2011 @ 14:25

Hola María,

I read about this as well and it seemed like very good news to alll the people who fell victim to developers/promotors who went bankrupt or just disappeared.

However how would it work in reality. We have some clients who became victim of purchases with deposits who can´t get their money back as the bank warranty has never been given or it´s unclear. Or people who have claims against promotors who hide behind the fact that the banks have taken over their apartments or complete developments.

I got some information from another lawyer firm that it´s possible to recoup some and I have scheduled a follow up meeting to see if it would be practically feasible, but I´m very interested in your take on how this would actually work.

Maybe do a follow up on it?

Max!

JohnHughes said:
07 November 2011 @ 23:16

My lawyers are already doing this and have the answer even if you do not have a bank gurantee