Sunday March 1, 2015 Search
Weather | Athens
11o C
6o 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 sectors 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 sectors 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 economys 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)  
Greece seeks negotiations on ECB bond repayment
Piraeus plans are coming in next few weeks
Slowdown in tourism bookings from Germany
Economy grew by 1.3 pct in Q4 of last year
Alleged accomplices of N17s Xeros caught in Athens
One man was arrested and another detained in Athens on Saturday in connection to the November 17 terrorist Christodoulos Xeros, who was recaptured in January after a year on the run. Accordi...
Hellas Gold and workers react to Greek govt decision on plan permit
Hellas Gold and its workers at the gold mine in Skouries, Halkidiki, have vowed to take legal action after the government announced on Friday that it would be recalling the permit for a proc...
Inside News
BASKETBALL
Spanoulis leads Olympiakos to win over Malaga
A good second half was enough for Olympiakos to get the better of Unicaja Malaga (77-72) and score its seventh win in eight games at the second group stage of the Euroleague on Friday. Playi...
SOCCER
Ten-man Olympiakos couldnt overcome Dnipro
Olympiakos drew 2-2 with Dnipro from Ukraine at home on Thursday, playing almost the entire second half with a man down, to bow out of the Europa League, despite facing an opponent which on ...
Inside Sports
COMMENTARY
A unionist agenda
Maybe Greece will not experience a credit event, because it is in no ones interest, as Minister of State for Coordinating Government Operations Alekos Flambouraris recently assured. Maybe...
EDITORIAL
The beguiling limelight
Too much media exposure is never a good thing and there is no shortage of newcomers in politics who are beguiled by the limelight. What usually comes after this thrall of publicity is the in...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Alleged accomplices of N17s Xeros caught in Athens
2. Hellas Gold and workers react to Greek govt decision on plan permit
3. Greek ministry says teacher hirings to continue via ASEP
4. Women conned elderly Cretans by posing as church representatives
5. Spain, Portugal sought to trip up govt, Tsipras says
6. Police nab Kavala man over homegrown cannabis
more news
Today
This Week
1. Greece seeks negotiations on ECB bond repayment
2. Spain, Portugal sought to trip up govt, Tsipras says
3. A unionist agenda
4. Hellas Gold and workers react to Greek gov't decision on plan permit
5. Greek ministry says teacher hirings to continue via ASEP
6. Women conned elderly Cretans by posing as church representatives
Today
This Week
1. Time for Alexis Tsipras to keep his nerve
2. Greek bailout deal faces review by euro officials next week
3. Greece says eurozone deal won time as cash bled from banks
4. The ignorance of the West about the culture of Islam
5. A fierce battle looms
6. Spain said to lead push to hold Greece to terms as Podemos grows
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.