As the number of defaults on mortgages grows, the banking board suggests that more properties should be built and more mortgages granted for them. You can be forgiven for wanting to read that twice to make sure you have understood – don’t worry; you have.
The banking sector is being seriously affected by a ‘lack of trade’ in the mortgages sector, with a default figure of 10.7% on existing mortgages. In other words, the amount owed by mortgage holders with three monthly payments outstanding or more has reached 182,226 million.
Does that sound like spending your way out of a financial crisis, because if it does, the Prime Minister, Mariano Rajoy with his cuts+cuts+cuts strategy will not be impressed.
This suggestion by the national banking board Chairman, Miguel Martín came hard on the heels of the Government’s announcement that it was considering giving official residency papers to foreigners from outside the European Union that buy houses for 160,000 euros or more. In other words, legal residency is now up for sale.
This idea should please the largest real-estate-for-sale owners in the land – the banks.
The idea is not official yet as the Government said that they would be examining the idea; in other words, sound it out and see what sort of opposition it creates before committing itself to it.
Opposition parties, workers unions and immigrant associations were not impressed, describing the idea as “strange” and “unlikely.”
The Prime Minister, Sr. Rajoy, made the customary reply to any pending decision, “Nothing has been decided as yet.” However, he did add,” The Government wants a ‘stock’ of properties back onto the market at reasonable prices; not the disproportionate ones of before. We need to sell properties and for the construction sector to reactivate.” He clarified that he didn’t mean for the sector to churn out 900,000 properties a years, which was the case in 2006 and 2007, but that putting the sector in motion was important as it provides jobs.
The prime candidates for this ‘offer’ will be the citizens of Russia and China, explained the Minister of the Economy, Sr. García Legaz.
One last point; residency permits obtained in this manner would not give the purchaser the right to public health services, work permits or ‘family regrouping:’ i.e., calling the rest of the family over.