Sareb Sells Flats at the Average Price of 78.000 Euros

Average sale price of the property of Sareb equals to 77.777 Euros. This is the data made public be the Minister of Economy, Luis de Guindos, during his speech at the Congress of Deputies.

The Minister informed that Sareb, having around 9.000 properties sold, have earned about 700 million Euros from their sales. (…)

In total the bank owns 3.500 million Euros, out of which 2.800 millions correspond to transactions linked to financial assets, forming 80% of its portolio.

“Current banking generation will allow it to face expenditures and debt service without any problem. Moreover, Sareb could amortize its senior debt as well.” – says Guindos – “This has got double-fold effect. On one hand it reduces risk that Sareb could create for the State as it lowers the state endorsement by the same amount”. Sareb´s capital is in 45% public and the rest belongs to private shareholders, fundamentally to Spanish banks.

Guindos reminded that the company will start this year “completion of the suspended construction works, which will consume around 100 million Euros.” The minister pointed out the interest among the international investors awaken thanks to the bad bank (…).

Anti-eviction Policy

Thereupon, the Minister of Economy revised the achievements in the anti-eviction policy of the Government and according to their estimations, 4.000 families has already benefited from it.

The data from the second quarter of 2013 shows that the code of good practice for banks has propitiated 600 dations in payment (handing the house over as the only condition to pay the debt off) and 1.600 mortgage loans restructurings.

Similarly, the temporal paralise of the evictions halted the mortgage execution of 1.500 dwellings, while 600 families have been relocated thanks to the social housing fund supported by financial entities.

Source: Cinco Días