Spanish Property: The Crisis Continues ?!

The situation that has developed in Spain today , economically one of the most unfavorable countries of the European Union (balancing on the brink of state bankruptcy, which Greece has been dealing with for more than a year, can be left out of brackets, as not the most typical example of capitalist management) can be explained primarily by the cruel Crisis in the real estate market. And, often, real estate, freshly built in the boom years, but still has not found its buyer. Millions of square meters, entire residential complexes throughout the country are empty - in some of them even cases of unauthorized settling have been noted.

Property prices began to fall in the fall of 2008 and continue to crumble to this day, which has largely devalued the assets of many banks that found that they do not have collateral for issued mortgage loans or that this collateral does not correspond to the borrowed amount. The situation, which threatened the collapse of the banking system of the country, has so far been saved with the help of a targeted loan from the Eurogroup in the amount of more than 100 billion euros, but the situation has not radically changed.

Credit organizations were offered to get rid of the so-called "bad" assets and they really took care of this, often simply throwing out debtors to the street and selling the apartments that were lying on the balance sheet. The latter sometimes and at bargain prices. The trend, however, did not last long, as the first measure led to literally a wave of suicides among Spaniards who found themselves not only without work, but also without a roof over their heads, and the second is just a rarity, since banks have not yet learned to trade at a loss.

The government of the country for its part is somehow trying to revive demand, including with the attraction of foreign capital. So, for example, an unprecedented surge in reviews was caused by the initiative of the Cabinet, according to which any foreigner, even not from the EU countries who bought new property in Spain for more than 160 thousand euros, can get a temporary residence permit. Immigrant organizations have expressed a flagrant injustice, while opponents of the ruling People's Party have expressed concerns about the legalization of criminal capital in Russia from Russia and China. These objections, however, are unlikely to lead to any real response in the government, as the country desperately needs cash in order to reduce the blatant budget deficit. In three times exceeding the standards established for the countries of the "euro area".