ADDENDUM: Spain’s Banks are Worse Than Official Numbers Suggest « DARECONOMICS

Spain’s Banks are Worse Than Official Numbers Suggest « DARECONOMICS.

I just read that Spain has over 1,ooo,ooo empty houses. The average mortage in Spain is €105,000. This implies that there are €105bn in bad mortgages. I wonder how many of these have been marked as nonperforming with the bank adjusting its capital…

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4 thoughts on “ADDENDUM: Spain’s Banks are Worse Than Official Numbers Suggest « DARECONOMICS

  1. We all wonder. The last brainchild of Rajoy is to offer residence permits to foreigners buying a house for at least 160,000€ cash (policy especially aimed o russians and chinese). Banks retorted that while that is good policy, the law to stop evictions is badbadbad and that the government needs to spend on stimulus for further construction. Really.

    • Well, there are over 1 million empty homes, but that idea wouldn’t even put a dent in the problem. More construction is just going to distort the housing market rather than helping it heal.

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