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The credit crunch brings good news on Golf Courses

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Offline Els Frares

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« on: March 06, 2008, 17:35 PM »
Just released last week was a report issued by Madrid investment consultancy firm "Dyrecto"  based on lending criteria guide lines issued by the Banco de EspaƱa to Spanish banks.
Golf course developments have been given the lowest credit rating, and banks have now been advised to down grade valuations and not to lend to these developments unless the developers put up  70%  of the total investment needed. Also severely downgraded are urbanisation developments where the criteria is that developers must have pre signed sales contracts before any loans are considered. This should certainly put the skids under the rape and pilage that has been going on in the last few years. :technodevil:
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Offline Technopat

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« Reply #1 on: March 06, 2008, 22:22 PM »
Greetings Els Frares/Brian,
Many thanx for that - cheered me up no end!
My natural pessimism, however, leads me to worry 'bout how long it'll take to trickle down far enough to make any difference. It was more than two years ago that a friend of mine at the very top of a leading Sp. bank issued an order to branches not to lend any more money - under any circs. - to property developers and related businesses.
Problem probably isn't the banks (well, y'all know what I mean), but I would imagine that the cajas de ahorros, stuffed as they are with local politicians and their cronies, will still continue to hand out the dosh for their hare-brained get-rich-quick schemes.
Can't-stop-but-will-be-back regs.,
Technopat
Technopat's disclaimer: If this posting seems over the top and/or gets your goat (Sp. anyone?), please accept my apologies and don't take it personally - it's just my instinctive tendency to put my foot in it whenever/wherever possible. See also:
http://www.iberianatureforum.com/index.php/topic,266