Spectator on facebook

Spectator on facebook

BUSINESS IN SHORT

No loans for foreign housing

INCREASING real estate prices in Slovakia have caused some Slovaks to look for housing in border regions of neighbouring countries, especially Austria and Hungary. However, if they lack the cash for the deal, buyers will not be able to use the standard mortgage loan. Slovak law allows a person to use only Slovak real estate as collateral for a loan.

INCREASING real estate prices in Slovakia have caused some Slovaks to look for housing in border regions of neighbouring countries, especially Austria and Hungary. However, if they lack the cash for the deal, buyers will not be able to use the standard mortgage loan. Slovak law allows a person to use only Slovak real estate as collateral for a loan.

According to the financial daily Hospodárske Noviny, potential buyers would have three options if they do not have the cash. They can take out a consumer loan, (inevitably at higher interest rates); they can get a euro-mortgage loan or they can take out a housing loan from a foreign bank.

Local banks would be happy to offer loans for foreign real estate but the law forbids it.

“We would welcome a change in the legislation,” said Ľuba Foltánová of VÚB bank.

Finance Ministry spokesperson Ján Onda told the daily that the ministry has no plans to revise laws to enable banks to provide mortgages to purchase housing abroad.

“For the time being we want to support construction in Slovakia,”said Onda.


Top stories

Why did we have to wait ten years for the verdict in the bulletin-board case?

The case is still not concluded. The Supreme Court will have to deal with the appeal of ex-ministers; the case of embezzlement by the non-licensed banking institution of Jozef Majský has also become protracted.

Ex-minister Janušek, sentenced October 18.

Refurbishment of Trnavské Mýto has started

The facelift of the underpass crossing should be completed by summer. Fate of nearby Istropolis still not known

Reconstruction of Trnavské Mýto underpass started.

Europe will continue fighting dual quality products

The recent Bratislava summit raised some suggestions on solving the problem, but it will be a long process.

Yeme grocery store in Bratislava.

The chairman of the committee tasked to improve tax returns has problems himself

The newly set-up committee meant to prepare a law on the more detailed property disclosures of politicians is headed by ex-minister Martin Glváč from Smer, who is refusing to publish details of his assets.

L-R: Martin Glváč and Andrej Danko