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MADRID – Spanish bank Santander’s real estate fund is unable to repay more than EUR 2.6 billion to investors and is seeking government help, the financial markets authority said Monday.
"The fund currently lacks the necessary liquidity to cope with the repayment of this sum," read a document from Santander Real Estate released by Spain’s financial markets authority (CNMV).
Santander has therefore "requested authorisation from CNMV to be able to suspend the repayments for a period of two years," the document said.
Spain’s once-buoyant economy has now entered a recession, with the key real estate in particular being badly hit by the global economic crisis.
[AFP / Expatica]