Monday Jul 28, 2014 Search
Weather | Athens
31o C
23o 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)  
Great margin for growth in exports
Parliament’s Budget Office says third bailout may be needed
Ryanair ‘not particularly interested’ in Cyprus Air
August 2 expected to be Greek tourism’s D-day
Ministry appeals to keep limit on prescriptions
Faced with the prospect that its attempts to rein in spending on medicines will be scuppered, the Health Ministry appealed on Monday against a Council of State ruling to temporarily suspend ...
Universities aghast at new schools opening
University officials have decried the government’s decision to open two new departments at the same time that funding for the tertiary institutions continues to be slashed. It emerged that t...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Weighing all the factors
Certain people in the know continue to believe that snap elections will take place in the fall. Prime Minister Antonis Samaras is obviously aware of this trend, which is why he told Parliame...
EDITORIAL
Clear rules, for everyone
If we want to deal with the economic crisis, we need clear rules. A large number of individuals and businesses have amassed huge debts they cannot service. And some worrying symptoms have al...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Ministry appeals to keep limit on prescriptions
2. Great margin for growth in exports
3. Universities aghast at new schools opening
4. Greece to hold next talks with troika in Paris, not Athens
5. Anastasiades sees lack of progress on Cyprus talks
6. Supreme Court deputy prosecutor says ex-finance chief should be tried over ‘Lagarde list’
more news
Today
This Week
1. Defense Minister Avramopoulos to represent Greece at European Commission
2. Tree collapses in village square, killing nine-year-old boy
3. Euro inflation seen testing ECB patience as stimulus takes time
4. Minister mulls fixing food and drink prices at non-private beaches
5. Maziotis moved to Diavata Prison in Thessaloniki
6. Multi-bill containing prior actions ready for Parliament
Today
This Week
1. Climber dies in Mount Olympus fall
2. Greek sovereign debt at 174.1 percent of GDP in first quarter
3. Unequal after death
4. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
5. Quadriplegic woman on life support 'dies due to unpaid power bills'
6. Front-line threats
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.