ECONOMY

Credit system sees funding role in residential property transactions shrink

Banks are expected to have an even smaller role in the financing of residential property transactions in the first half of the year, weighing on the already tough market conditions.

The Bank of Greece expects the lending criteria to become even stricter in the second quarter of the year as a result of the problematic financial conditions in the country and the credit crunch that the local banking system is experiencing.

Last year BoG data showed that the share of property transactions financed by banks amounted to just 20 percent, against 82 percent in 2009.

The average share of the funding reached 35 percent of the total price, down from 70 percent in 2009.