Greek Mortgage Market Shows Signs of Stabilisation - Fitch

Greek Mortgage Market Shows Signs of Stabilisation - Fitch

Fitch Ratings said the performance in Greek RMBS transactions is showing signs of stabilising, with mortgage arrears levels flat and new defaults occurring at a reduced rate in the third quarter of 2013.
The proportion of the loans that are in arrears by more than three months increased only marginally by 20 bps to 4.7%, following a period of more rapid increases, Fitch said. The constant default rate (a measure of the number of new loans defaulting) actually fell during the third quarter to 1.5% from 1.8% in the previous quarter.
House prices have continued to decline, however. Data from the Bank of Greece suggests that prices of new build properties (under five years of age) have been more resilient than prices of older properties (over five years of age), the rating agency said, adding that this is due to the more modern houses generally having better designs and specifications.

“Recoveries on defaulted loans continue to be extremely weak as the moratorium on lenders taking possession of certain categories of property remains in effect,” Fitch said. “The application of a new capital gains tax on properties may also further depress recoveries as well as prepayment rates.” 

Previous Next
Test Caption
Test Description goes like this
Cookies Preferences
Choose Type of Cookies You Accept Using

These cookies are required for the website to run and cannot be switched off. Such cookie are only set in response to actions made by you such as language, currency, login session, privacy preferences. You can set your browser to block these cookies but our site may not work then.

These cookies allow us to measure visitors traffic and see traffic sources by collecting information in data sets. They also help us understand which products and actions are more popular than others.

These cookies are usually set by our marketing and advertising partners. They may be used by them to build a profile of your interest and later show you relevant ads. If you do not allow these cookies you will not experience targeted ads for your interests.