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Real estate funding is back: 70m euros in three transactions

Real estate funding is back: 70m euros in three transactions
09.03.2011, 22:01 13

Banks have turned on the tap of funding for real estate projectsagain, with the development of two new malls - ElectroputereCraiova and Colosseum Bucureşti - and the acquisition of thePraktiker store in Craiova being financed through bank loans wortha cumulated 70 million euros.

Consultants say small and medium-sized real estate funding - upto 40 million euros - can currently be negotiated with the localbranches of foreign banks, while for higher amounts the approval ofparent banks is necessary. The three real estate loans of the lastfew weeks have been granted by UniCredit (Electroputere), Bank ofCyprus (Colosseum) and Marfin Bank (Praktiker Craiova). Last yearjust as in 2009 banks had to allocate hundreds of millions of eurosfor non-performing loans. The "problematic" real estate projectsare not completely out of the woods yet, but some banks say theynow stand a good chance of rebalancing their portfolio.

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