UK Real Estate Debt: A Problem for the Borrowers and the Banks (July 2009)
The first of the IPF Research Programme Short Paper Series. With the scale of debt secured against commercial property increasing, this paper looks at how banks are protecting their interests. The paper examines what happens to loans in covenant breach and the processes that are undertaken by banks when action is taken, including a review of Basle II. Refinancing issues are explored and the role of government intervention (NAMA and APS) is discussed.