Sareb to Pull Prices Down to Compete With Its Banking Shareholders

5/06/2014 – El Confidencial

Belen Romana, chairwoman of Sareb, banged her fist on the table on seeing the huge discrepancy between property sales figures of its main shareholders and its own results. Therefore, she stated that the bad bank is going to cut in prices even more to be able to compete with them.

The decision stands in opposition to recent decisions of banks to stop values slash. Moreover, Sareb needs to recover the losses brough about to its accounts by the new law forged by the Bank of Spain.

The banks sold much more than the bad bank did in 2013, yet their results remained the same also this year. Sareb considered the sale of 9.000 units in 2013 a great success. To compare, Santander, CaixaBank, Sabadell, Popular, Bankinter and BBVA marketed jointly over 80.000 properties

In the first quarter, the bad bank sold 3.800 units, while its stakeholders shed jointly 14.000 properties.

Facing such a situation, Belen Romana had to take a decisive step to sell more and minimize losses driven by the regulation.

 

Original article: El Confidencial (by Eduardo Segovia)

Translation: AURA REE

41