Greece is facing forced auctions of real estate whereas banks are burdened by toxic loans that have increased dramatically, mentions Wiener Zeitung.
“The toxic loans growing by leaps and bounds” is the title of anAustrian report in Wiener Zeitung, which refers to the situation in the Greek banking sector and the real estate crisis.
The Austrian newspaper notes “the lenders of Greece celebrate the progress of Athens in the field of cuts and reforms,” adding “Greece is facing a wave of forced auctions of real estate, worse than that of Spain.”
This report describes the situation in the Greek financial sector and noted that while growing toxic loans by leaps and bounds, the total debt is reduced in Greek banks.
There are many reasons explaining this evolution, notes Wiener Zeitung and explains: “in Greece, the crisis remains at a high level of interest rates for new loans.”
“More and more Greeks are falling into the trap of debt and this is due to inter alia in the increase of property taxes. The Greek state wants to derive 2.65 billion from property owners, seven times more than in the period before the crisis,” observes the Austrian newspaper, recalling that 250,000 properties are affected because of forced auctions and high taxation.
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