Bulgaria Banks Refuse Loans for Greenfield Apartments

Bulgarian banks are unwilling to give loans for the purchase of greenfield apartments. Photo by Sofia Photo Agency

Banks in Bulgaria are increasingly refusing mortgage loans for "Greenfield" apartments, i.e. ones that are still at the beginning stages of construction.

The information was provided by Tihomir Toshev from "Credit Center" in Sofia, a firm specializing in handling loan applications, as cited by Darik Radio. In his words, a mortgage loan could be granted if at least the crude construction of the apartment building is complete.

Toshev believes the real estate prices in Bulgaria are going to continue to go down at least by the end of 2009, and that the bank will continue to be unwilling to give mortgage loans for Greenfield apartments in 2010.

The market of Greenfield apartments in Bulgaria is not completely dead but such deals are mostly made by persons who do not need a loan to fund them.

 

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