Spanish real estate lobby demands government to prevent a domino effect over entire economy after Fadesa trouble

The organization representing the interests of the biggest real estate groups in Spain, G-14 warned the Spanish government that it needed to prevent a possible domino effect following Fadesa trouble this week, Reuters informs. G-14 includes some groups that are also active on the Romanian market, such as Hercesa and Realia. The intervention comes after Fadesa, Spain’s biggest real estate company announced on Monday night that it has filed for protection.

Reuters reads that Spanish PM Jose Luis Zapatero has constantly refused to intervene in the real estate sector. According to the quoted source, he maintained the same position on Monday as the governmental credit agency ICO refused to offer Fadesa a 150 million euro loan to pay a debt.

Spanish El Economista also reads about the G-14 appeal to the government to intervene in order to bring control on the real estate sector and urged the government to take some measures. The Martinsa-Fadesa group, one of the biggest in Spain declared that it lacks funds to pay off its debts on Monday night.

Fadesa is also present on the Romanian market where it is supposed to invest over 1.6 billion euro. Representatives of the Romanian branch declare that these projects will be accomplished. A Fadesa representative in Spain also told HotNews.ro on Tuesday that the subsidiaries of the company abroad are not affected by the process initiated in Spain.