Developers More Indebted Than Mortgagors

19/12/2014 – El Pais

Default on mortgages for home purchase held by individual customers screeched down and halted at 6% at the end of September. The number is a copy of 2013, when it showed 5.99%. Just the opposite happens in the property sector, whose indebtness increased by 37.4% year-on-year, the Bank of Spain reported.

At the end of the third quarter, non-performing mortgage loans amounted to nearly 35.21 billion euros inside the total credit portfolio of 586.09 billion. In turn, the developer debt owed to Spanish banks was reaching almost 156.2 billion in September, of which 58.49 billion or 37,4 % were delinquent. This means a 33.6% increase from the last year, and a 38% fall in respect to the end of 2013.

 

Original article: El País (by S. L. L.)

Translation: AURA REE

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