Spanish banks left with worthless land assets

[Nicholas Wallwork]

While on the surface it seems as though the Spanish banking system has been through the worst of the downturn, received finance from investors and the European Union, there are worrying signs that this may not be the case. A number of property experts across Spain have stepped forward to confirm that much of the [...]

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[DC]

Yes the banks are sitting on much land. Without a big resale market.

It is chicken and egg. Spain has not built much since 2007 and developers can not get finance to build new stuff, because the bank is not giving them the money.

So the banks have land, and they will not sell to developers because the developers need development finance as well as the land!

So it is going to be a big waiting game. Developers continue to do reforms and renovations, nothing new gets built, and then we have a lack of types of housing.

a real pickle the banks created. They are absolutely incredible. The banks in Spain. Absolutely. Amazing.