Thursday, January 12, 2012
Any reason this sanctioned ‘extend and pretend’ won’t come to UK?
The drive to keep building in a housing market drowning in empty properties shows the depth of Spain's banking crisis. The country's housing bust saddled banks with not just vacant homes, but also billions of euros worth (sic) of undeveloped land. Yet rather than writing off the land as a loss and attempting to sell it, banks have been building on empty lots. Francisco GÃ³mez, a building firm's chief executive, said he hasn't been able to sell homes, or even pay interest on theie loan, for the past three years. Instead of foreclosing, he said the bankâ€”which he won't nameâ€”has been lending him more money to cover the interest payments, adding an extra â‚¬3 million to the total debt.