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Mortgages in Banks’ Balance Sheets Shrink 9.2% in June

5/09/2014 – Expansion

The volume of mortgages found in the balance sheets of Spanish banks stood at €746.96 billion in June, by 9.2% less than the same month a year earlier.

As per the information published by the Spanish Mortgage Association (or AHE by its acronym in this language), during the first six months of 2014 mortgages fell by 3.3%. Compared to May figures, the balance diminished by 0.9%.

Several banks assure that in the first half of the year, mortgage approvals revived. In fact, in regard to the numbers by the National Institute of Statistics (or INE), granting of residential loans leaped in June by 19%. However, the slight improvement is not enough to compensate the old credits which are squeezing the volume.

In June, mortgages represented 62.4% of the total loan outstanding amount managed by banks, while a year before they accunted for 63.6%.

 

Original article: Expansión

Translation: AURA REE