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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 415. Law 57/68 and overexposure of Banks to real estate
27 December 2010 @ 11:35

A new:

As you all know, Bank of Spain has requested Banks and saving banks to show their exposure to real estate risk by the beginning of 2011. Some banks have already informed the Stock Market National Commission on the impact of the real estate crisis to their accounts. Bancaja, for instance registered its leaflet by which it informs that its non profitable foreclosed assets by date 30rd of September 2010 is of 3596 millions euros. CAM declares 3200 millions of euros. Caja Madrid declares 1197 millions of euros

These figures come from flats, developments and land assigned to banks as a consequence of foreclosure procedures.

The Spanish financial sector has 70.000 millions of euros of estate either assigned or acquired, according to data of bank of Spain dated June 2010.

Two ideas:

- Most of this estate was conceived as second residences for northern europeans. Sunny homes. Why not to negotiate our debt with these assets?

- If Banks had been respectful to requirements from balance out of Law 57/68, this disasterous exposure would have not had this enormous dimenssions. Lack of diligence: dangerous business. Or as the old spanish saying says " La avaricia rompe el saco"

Anyhow, let´s keep moving ahead!

Maria

 

Uvas by Sir. Mo at Flickr.com

( You all may know that we, Spaniards eat grapes when the Year is coming)

 

 



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2 Comments


Doedoe said:
07 January 2011 @ 11:54

If the Cam Bank owned 27 of the 50 units on a complex, how many votes would they have at an AGM or EGM. 1 single vote or 27



Maria said:
07 January 2011 @ 13:04

One vote if they have paid community fees, no votes if they have not.


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