MADRID, Oct 28 (Reuters) - Banesto, a subsidiary of Spain's biggest bank Santander, said on Wednesday it would sell off 1,200 homes it has repossessed or taken in lieu of debt payments at discounts of up to 40 percent.
The move came just days after it emerged that the Bank of Spain was planning to make banks double provisions to 20 percent for property held on their books for more than a year, in a move designed both to free up the housing market and make banks come clean over their losses from the burst property bubble.
There has been concern that Spanish banks have been keeping the lid on their non-performing loan ratios by accepting property from struggling real estate developers who would otherwise go bankrupt.
The retention of tens of thousands of unoccupied properties has also slowed the correction in Spain's property market, which has seen a fall in existing home prices of about 14 percent since the peak of the housing boom in July 2007.
(Reporting by Carlos Ruano; Writing by Jason Webb; Editing by Greg Mahlich) Keywords: BANESTO/HOUSES (jason.webb@thomsonreuters.com; +34 91 585 83 28; Reuters Messaging: jason.webb.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The move came just days after it emerged that the Bank of Spain was planning to make banks double provisions to 20 percent for property held on their books for more than a year, in a move designed both to free up the housing market and make banks come clean over their losses from the burst property bubble.
There has been concern that Spanish banks have been keeping the lid on their non-performing loan ratios by accepting property from struggling real estate developers who would otherwise go bankrupt.
The retention of tens of thousands of unoccupied properties has also slowed the correction in Spain's property market, which has seen a fall in existing home prices of about 14 percent since the peak of the housing boom in July 2007.
(Reporting by Carlos Ruano; Writing by Jason Webb; Editing by Greg Mahlich) Keywords: BANESTO/HOUSES (jason.webb@thomsonreuters.com; +34 91 585 83 28; Reuters Messaging: jason.webb.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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