Banking changes on property matters in Tenerife and Spain may be on the way.
The Bank of Spain is contemplating the idea of raising provisions made by the banks for bank-owned repossessed residential properties in Spain on to their books to 30% of asset value in 2010, from 20% due to be implemented for 2009, it has been reported…
The Spain property market has endured a torrid time over the past couple of years, following a real estate boom, with values plummeting across the country.
Banks in Spain have been accepting property from struggling Spanish property developers who would have otherwise faced bankruptcy. Last month, the Bank of Spain told the banks they would be required to double their property assets provisions to 20% from 10%.
