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SPAIN appears to be in debt up to its ears.
Money owed to the housing mountain is now the equivalent to triple the country's gross domestic product for this year.
The real estate industry in Spain has now amassed a total debt of more than a 1 billion euros for the first time.
The amount is due in part to the families who are buying or refurbishing their homes, and when added to the amount owed by real estate businesses and builders the total is THREE times the GDP.
A new study from the Risk Centre of the Bank of Spain has revealed that there are more than 30 million mortgages and loans currently taken out to the value of 3.2 billion euros.
The study also says that 16 million Spaniards owe an average of 190,000 euros to banks, which is NINE times their average annual salary.
The survey says the fall in real estate sales being seen now is bringing greater uncertainty to the sector.
Industry sources say loans are to get more expensive in the next few months, but it will be in the area of consumer goods and business loans where this will be noted most.
Some observers think problems will occur only if banks stop lending to those who want to buy more land.
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thinkspain.com
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