Ibercaja sells property developer loans and credits for €489M

Ibercaja sells property developer loans and credits for €489M

According to the Spainsh Real Estate, this volume represents a decrease of 36% in terms of the total number of doubtful property developer loans that the entity held as a March 2017. 43% comprises loans granted to finance land purchases, the highest percentage of such loans in an operation of this kind recorded in Spain to date.

This Fleta operation has decreased the volume of doubtful loans, since 2014, by €1,103 M, to 57% of the initial volume. It follows the strategic plan of the financial institution, which is reinforcing the financial strength of the entity, “driving the transformation of the business model and activating the geographical growth plans for the retail business”, said sources at Ibercaja .

Meanwhile, Ibercaja has increased the financing of new real estate projects, and had tripled in 2016 the number of homes it financed with respect to 2014.  It financed 150 new projects, most of which are located in Madrid, Barcelona and Zaragoza.

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