In times of pandemic, there is another rung on the business ladder, that of financing. Accessing credit is hard, but not impossible. Although, as the experts acknowledge, it is becoming more expensive because the projections of income, occupancy rates and sales are inevitably more difficult to calculate.
“You study forecasts on an asset-by-asset or specific project basis, and the ratios and costs have to be adjusted accordingly,” says Gema González, Europe Director of Deutsche Pfandbriefbank. In this context, developers have also tried to diversify their sources of financing outside of the banking channels. On the banks’ side, the fear of the bad debt ghost does not make it easy either, although refinancing operations are taking place.