topics
tools
Expatica countries
Index Last Var.(%)
BEL 20 2270.63 -0.42
DAX 6788.8 0.59
IBEX 30 8902.1 0.60
CAC 40 3424.71 0.43
FTSE 100 5895.47 0.33
AEX 325.12 -0.06
DJIA 12890.46 0.05
Nasdaq 2927.23 0.39
FTSE MIB 16653.83 -0.09
TSX Composite 12497.94 -0.18
ASX 4322.6 -0.79
Hang seng 20760.03 -1.19
Straits Times 2963.44 -0.59
ISEQ 20 503.71 0.33
You are here: Home News Spanish News Bankruptcy of Martinsa-Fadesa threatens 12,500 homes

Spanish News

archive
Enlarge font Decrease font Text size


16/07/2008Bankruptcy of Martinsa-Fadesa threatens 12,500 homes

About 12,500 families had already begun paying for homes that are being constructed by the Spanish property giant.

16 July 2008

MADRID - The collapse of the Spanish property giant Martinsa-Fadesa was Wednesday causing concern to thousands of families, which had made the company advance payments to acquire homes in several countries, media reported.

The daily El Pais said 12,500 families had begun paying for homes that were still under construction in Spain, Portugal, France, Morocco and eastern Europe.

Martinsa-Fadesa pledged to honour its contracts insofar as the financial conditions allowed for it.

The company, which filed for creditor protection on Tuesday, is the biggest victim so far of the meltdown of Spain's construction sector, which has been hit by rising interest rates and the global credit crunch.

The slowdown of the construction sector is hurting the entire Spanish economy which has also been affected by other factors such as rising oil prices and related inflationary pressures.

Martinsa-Fadesa is preparing to sack 234 people, more than a quarter of its workforce, after running up debts of EUR 5.2 billion euros.

Economy Minister Pedro Solbes said Tuesday that the government had an interest in guaranteeing that the company preserved the maximum amount of jobs and that houses under construction were finished.

[dpa / Expatica]


0 reactions to this article

Be the first person to add a comment

General rating: Not rated yet

Rate article:    Add my rating


0 reactions to this article

Be the first person to add a comment
Discussion Forums

English in Spain

Public (free) primary schools in Barcelona + surrounding areas.

Jobs in Spain

IFAs / FSIs / Country Managers / Confidential Introducers

Community Noticeboard Spain

Barcelona-stay updated!

Housing in Spain

Sitges, Barcelona - 5 Bedroom Villa € 1,150,000 For Sale

Jobs in Spain

“Silicon Valley Comes to Barcelona”, 24th Feb 2012

participate in the forums

Inside Expatica
Editor's Guide: Getting Started in Spain

Editor's Guide: Getting Started in Spain

Expatica's Getting Started section will provide practical information on how you can open a bank account, exchange your driving licence, improve your Spanish, and more.

Groups and Clubs in Madrid

Groups and Clubs in Madrid

Here's a guide to an extensive list of groups and clubs in Madrid for expats, from sports groups to social and family gatherings.

Groups and Clubs around Spain

Groups and Clubs around Spain

A brief introduction to our Tax section for Spain, from help with inheritance tax to accounting advice.

Groups and Clubs in Barcelona

Groups and Clubs in Barcelona

Here's a short introduction to our Banking section for those living in Spain, from what to ask the experts to opening a Spanish bank account.