Bad news: Bank of Spain says real-estate developers have a potential troubled exposure
The Wall Street Journal talks quite often about Spain's financial situation.
In a recent article, published yesterday, John Shipman writes: "Spain Has Its Own Set of Problems Nowhere Near Being Solved. Though Spain’s IBEX 35 stock index jumped 1.7 per cent today, credit is telling a different story: Spain’s 10-year debt spreads against German bunds are a bit wider, and CDS spreads are 3 per cent wider, according to Market data".
Fair enough. However, Spanish housing market dropped prices due to it's situation. Not a bad idea to invest in a sector with prices so low.
Nonetheless, Jose Maria Roldán, head of regulation for the Bank of Spain, said Spanish housing prices have so far declined 22 per cent from their 2007 peak. He said that Spanish banks have a maximum potentially troubled exposure to real-estate developers equal to 13.5 per cent of total assets.