Spain’s biggest developer collapses
Fears about the extent of the economic problems facing Spain intensified yesterday when the country’s largest property developer filed for bankruptcy.
Martinsa-Fadesa, whose interests span apartment buildings, hotels and golf courses, said that it had been unable to secure a €150 million (£119 million) loan from the banks and creditors that hold its €5 billion of debt.
But remember the back-drop - a financial crisis caused by tightening, almost halt in lending:
More than 700,000 houses were built in Spain in 2006, more than Britain, Germany and France combined, but the market ground to a halt last year amid rising interest rates and tighter lending conditions from banks worried about the sub-prime crisis in the United States. House prices in the country are falling at the fastest rate for a decade.
Spain’s largest property developer collapses - Times Online