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The Covid Crisis Will Cause the Defaulted Loan Balance to Soar by €80 Billion

Investors expect that at least 50% of the loans granted to overcome the pandemic will go bad, which will raise the default rate to 7%.

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The Covid economic crisis will generate a significant increase in the portfolio of doubtful loans (NPLs and REOs), whereby generating a business niche for real estate investors in 2021.

According to Eduard Mendiluce, CEO of Blackstone’s companies Aliseda and Anticipa, the current NPL volume in Spain as calculated by the banks of 60,000 million euros will soon increase by another 80,000 million euros due to the defaults generated by the Covid crisis.

Read the full article in Spanish.

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