Monday November 24, 2014 Search
Weather | Athens
14o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Banks’ decisive return to mortgage market may take time

By Nikos Roussanoglou

Property market professionals have sensed in the first three months of the year that banks would like to return to the housing credit market, while stressing the current obstacles, including the completion of the bank sector’s recapitalization. They add that the confusion over the capital gains tax on property is also proving a major headache.

What is not in doubt is the credit sector’s almost complete abstention from funding property transactions in recent years. Bank of Greece data show in that in 2013 no more than 17 percent of residential property transactions were completed with the contribution of bank loans. This had reached 82 percent back in early 2009. The average rate of loan contributions to house payments reached 35 percent last year, down from 70 percent in early 2009.

Theologos Bosdas, head of Engel & Volkers estate agents’ Greek branch, says that the recapitalization of the banking sector must be completed before banks’ emerging interest can turn into a dynamic return to mortgage credit. Furthermore, “the economy’s exit from the recession must be confirmed and the political and economic climate must stabilize before banks return to housing credit,” he noted.

Fitch stressed in a recent analysis that the local housing market will continue to be affected this year by the prolonged deleveraging of lenders in the context of the rationalization of their loan portfolios. This is why they are cannot really be expected to increase their new mortgage loan issues within 2014, even though they reached a historic low in 2013.

According to the Bank of Greece, household debt from mortgage and consumer loans dropped to 100.8 billion euros at the end of 2013 from 106.5 billion a year earlier. Mortgage loans came to 71 billion euros, falling 6 percent from 74.6 billion at end-2012. These figures confirm that banks placed emphasis almost exclusively on arranging previous loans last year, having produced revised payment plans for 250,000 mortgages that added up to 18 billion euros in recent years.

Of course for banks to start issuing more housing loans, demand in the market needs to pick up too.

ekathimerini.com , Sunday March 30, 2014 (21:19)  
EU said to plan 21 billion-euro risk-sharing fund for investment
Countdown to missed opportunity for EU economy
Athens deserves slack from creditors
Transfer tax to be based on actual property cost, not objective value
Scientists expand excavation of ancient Amphipolis
Scientists have opened the second phase of their excavation of the vast 4th-century BC burial mound in Amphipolis town in search of more tombs and bodies. The first search of the site, which...
Cyprus on agenda in Biden visit to Istanbul
The prospects for the resumption of stalled peace talks on Cyprus and the issue of energy security were among the matters discussed on Saturday by US Vice President Joe Biden and Turkish gov...
Inside News
BASKETBALL
Olympiakos ends PAOK´s unbeaten run in Basket League
Olympiakos put an end to PAOK’s unbeaten run in the Basket League with an emphatic win at the Peace and Friendship Stadium, leaving Panathinaikos as the only team with a perfect record so fa...
INTERVIEW
Tokyo hopes to change the world
The 2020 Summer Olympic and Paralympic Games in Tokyo will serve as a springboard for the rebuilding of Japan’s image and economy following the triple blow of the earthquake, tsunami and nuc...
Inside Sports
COMMENTARY
Extremism from a bygone era
There are times when we seem to be overcome by self-destructive madness. I hear various commentators and politicians speaking in extreme terms of a junta, of defections, gallows, collaborato...
EDITORIAL
No call for more games
Psychological warfare has been a part of the negotiations between the troika and Athens from the very start of the crisis. But the situation is much different now and troika decision-makers ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Scientists expand excavation of ancient Amphipolis
2. EU said to plan 21 billion-euro risk-sharing fund for investment
3. Countdown to missed opportunity for EU economy
4. Olympiakos ends PAOK´s unbeaten run in Basket League
5. Athens deserves slack from creditors
6. Transfer tax to be based on actual property cost, not objective value
more news
Today
This Week
1. Countdown to missed opportunity for EU economy
2. Scientists expand excavation of ancient Amphipolis
3. EU said to plan 21 billion-euro risk-sharing fund for investment
4. Extremism from a bygone era
5. No call for more games
6. Carlsberg to use Greece as regional junction
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Biden heads to Istanbul amid tension over Cyprus EEZ violation
3. Anti-junta uprising anniversary to be marked amid tight security
4. Every age has its collaborators
5. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
6. Give Greece a chance
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.