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Martinsa-fadesa Falls Victim To Spain's Housing Crisis

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http://business.timesonline.co.uk/tol/busi...icle4336901.ece

Spanish property developer Martinsa-Fadesa has declared itself insolvent, having failed to raise a loan as part of a €4 billion refinancing package.

After a board meeting late Monday, the Madrid-listed company made a request to be declared in breach of payments, after it was unable to secure the €150 million loan.

The company said the move would prevent its financial crisis from becoming “irreversible and having grave repercussions on creditors and the interests of all shareholders".

It is the first large property group in Spain to seek protection from its creditors since the bubble burst on Spain’s once-booming real estate market last year.

Despite the woes in its home mortgage market, Spanish bank Santander yesterday launched a £1.3 billion takeover bid for Alliance & Leicester that will make it the UK's biggest mortgage lender when A&L is combined with Abbey.

The low interest rates that followed Spain’s accession to the eurozone in 1999 fuelled its housing boom as Spaniards took out mortgages to buy homes for the first time or to trade up to larger houses.

The market began to suffer early last year as rising interest rates and the international lending crunch hit Spain’s credit-fuelled expansion, making it hard to sell property in a market that many argue is oversupplied.

Martinsa-Fadesa has assets that were estimated to be worth €10.8 billion, and it employs 880 staff. Spanish press reports said the group was considering cutting its workforce.

I'm sure cutting a workforce of 880 staff will make all the difference!!!!!

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The CEO, Carlos Vela, jumped ship last week back to Caja Madrid, which he left a year ago as head of the business banking division...nice one!

Superb timing. I bet that's impressed the other 879 employees.

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Carlos Vela is now under investigation by the Madrid branch of the ruling socialist party (though what they have to do with it I don’t know):

“My attention is called to his behaviour when he was responsible for large-scale lending in Caja Madrid, and then as a person employed by Martinsa-Fadesa in order to manage the debt which he himself had lent [the company], and once the payments are suspended on the debt, is rescued by the chairman of Caja Madrid in order to carry on in a high-ranking role there”

Hahahahaha!

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Words cannot begin to describe how toasted Spain is.

We should run a book on which month the first riots will hit the streets in Spain. Surely can't be too far away now.

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Words cannot begin to describe how toasted Spain is.

We should run a book on which month the first riots will hit the streets in Spain. Surely can't be too far away now.

No, we just won´t bother looking in the mirror. :lol: (Artemio Cruz Syndrome) (From Mexico orginally, but you can see it in Spanish culture too)

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No, we just won´t bother looking in the mirror. :lol: (Artemio Cruz Syndrome) (From Mexico orginally, but you can see it in Spanish culture too)

I'm just glad that this crazy over building in Spain has 'naturally' come to an end and at last some of the perpetrators are being taken to task. Hopefully in 2 or three years we can reach some kind of equilibrium.

It has been the same situation in UK’s cities with the over supply of 'yuppie' flats, which wil become the slums of the future.

At the end of the day I blame the greedy public servants, at the higher levels, who succumb to the bribes from the developers and have a total lack of vision.

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No, we just won´t bother looking in the mirror. :lol: (Artemio Cruz Syndrome) (From Mexico orginally, but you can see it in Spanish culture too)

A hundred pesatas (yup, they'll be back) says they will be smashing the mirror after looking in it shortly.

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Carlos Vela is now under investigation by the Madrid branch of the ruling socialist party (though what they have to do with it I don’t know):

“My attention is called to his behaviour when he was responsible for large-scale lending in Caja Madrid, and then as a person employed by Martinsa-Fadesa in order to manage the debt which he himself had lent [the company], and once the payments are suspended on the debt, is rescued by the chairman of Caja Madrid in order to carry on in a high-ranking role there”

Hahahahaha!

So will there be a new Spanish Inquisition??

It must be nice to have friends like that!!!

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  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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