by: Tribune2
Total views: 1
Word Count: 548

As the US Federal Reserve responds to economic pressure by aggressively cutting interest rates, some countries might imagine they won't be affected by the lack of confidence in past decisions made by US and European banks. But some people outside the US have been surprised to learn that their own banks are heavily involved in bank to bank loans involving US companies affected by the subprime mortgage business, and their citizens are waking up to what a global economy can mean in bad times as well as good. In Europe, the tax havens of Monaco and Andorra are regarded as safe havens - or as safe as can be in today's global economy - and both countries have seen an inward flow of funds over the last year, not only from other European countries but from the Middle East and the US too. But now even the banks in Andorra are tightening up on who they lend money to, and cutting the amount they lend to property buyers looking for a mortgage. Previously the banks were lending up to 80 per cent of a property's value, but recently this has been cut to 70 per cent. In addition the previous ease of getting a mortgage with few checks for assets has been replaced with more documentation required. 'The new tougher controls on credit being seen by the Andorra banks might impact the property market a little as we are in the middle of the ski season, and some people on ski holiday end up buying an apartment, many taking advantage of easy to get loans.' commented one Andorra property company recently. Reporting on last year's property market, the company says 2007 looked gloomy for estate agents in Andorra for the year overall given poor sales for last January, February and March. But the second quarter proved to be dramatically better. Rather than the ski apartment selling season being delayed, what saved the second quarter was high net worth individuals looking for residency and taking advantage of Andorra's tax haven status that has reignited the property market. Buyers from the UK in particular were out in force during April, May and June - and again in the autumn from October, with many spending twice as much as the average ski apartment buyer. The property buyers tend to head for different areas of Andorra, with the ski apartment buyers tending to purchase in the key ski resorts of Soldeu and Arinsal. Those looking for residency for tax reasons go more for the year round villages and towns which have a resident community. Outside of the capital (la Vella) these tend to be La Massana and the upcoming village of Anyos, Ordino and Arinsal, although Arinsal's nightlife during the ski season early December to late April tends to steer many newcomers to La Massana and Ordino. It's early days in the global slowdown of easy credit and fast loans, and while London and New York are the main players in the banking game, countries as small as Andorra will be trying to avoid any major impact on their domestic banking systems and real estate markets, although in the medium and long term that might prove just impossible to achieve.

About the Author

YourAndorra provides information about Andorra banks at http://www.yourandorra.com/banks and property information is at http://www.propertyandorra.com

---

View PDF | Print View

---

Rating: Not yet rated

--Choose-- 0 1 2 3 4 5

Comments

No comments posted.

Add Comment

You do not have permission to comment. If you log in, you may be able to comment.
Next Article - Finding The Right Bank Account - What To Look For
Previous Article - Business Cash Advance: Payday Loan for Businesses

More Related Articles In This Category

1: Offshore Bank Account is a Must for Many Individuals
2: In One Hand And Out The Other
3: Long Term Savers Are Latest Victims In Bank Squeeze
4: How To Survive The Financial Drought
5: Interest Rate Determination Three Key Factors
6: The Risks Of Using ATMs When Out Shopping
7: Identity Theft and How You Can Recover
8: The Benefits of Online Banking and Investment
9: Unsecured Loans Your Solution to an Improved Credit Score
10: How A Business Account Is A Crucial Element In The Success Of Your Company
11: Advice For Those Starting A Small Business
12: Choosing A Bank For Your Assurance
13: Why A Business Rather Than A Personal Account Is More Advisable
14: The Banking World Is Changing
15: Why Your Credit Card Interest Rate Is Important
16: Choosing The Right Credit Cards For Your Use
17: Get What You Need Right Now With Credit Cards
18: When Starting A Business, The Choice Of Account Is Essential
19: Bear Stearns and the New Federal Reserve
20: I've Lost My Banking Job and I'm now a Debtor
21: Bear Stearns and the Free Market
22: Bear Stearns from 20 Billion to 236 Million and Beyond
23: Panama To Benefit From EU Crackdown On Offshore Tax Havens
24: Factors To Consider When Choosing A Business Account
25: Northern Rock - How A Problem Became a Disaster

---

For WebMasters

Link This Article - HTML Code -

<a href="http://americanahost.com/articles/finance/banking/us-banks-hit-euro-tax-havens.html" target=_blank>US Banks Hit Euro Tax Havens</a>

Link This Article - BBcode -

[url=http://americanahost.com/articles/finance/banking/us-banks-hit-euro-tax-havens.html]US Banks Hit Euro Tax Havens[/url]

Copy This HTML Code To Put This Article In Your Web Site.

<h1>US Banks Hit Euro Tax Havens</h1><br><br> <br><br> As the US Federal Reserve responds to economic pressure by aggressively cutting interest rates, some countries might imagine they won't be affected by the lack of confidence in past decisions made by US and European banks. But some people outside the US have been surprised to learn that their own banks are heavily involved in bank to bank loans involving US companies affected by the subprime mortgage business, and their citizens are waking up to what a global economy can mean in bad times as well as good. In Europe, the tax havens of Monaco and Andorra are regarded as safe havens - or as safe as can be in today's global economy - and both countries have seen an inward flow of funds over the last year, not only from other European countries but from the Middle East and the US too. But now even the banks in Andorra are tightening up on who they lend money to, and cutting the amount they lend to property buyers looking for a mortgage. Previously the banks were lending up to 80 per cent of a property's value, but recently this has been cut to 70 per cent. In addition the previous ease of getting a mortgage with few checks for assets has been replaced with more documentation required. 'The new tougher controls on credit being seen by the Andorra banks might impact the property market a little as we are in the middle of the ski season, and some people on ski holiday end up buying an apartment, many taking advantage of easy to get loans.' commented one Andorra property company recently. Reporting on last year's property market, the company says 2007 looked gloomy for estate agents in Andorra for the year overall given poor sales for last January, February and March. But the second quarter proved to be dramatically better. Rather than the ski apartment selling season being delayed, what saved the second quarter was high net worth individuals looking for residency and taking advantage of Andorra's tax haven status that has reignited the property market. Buyers from the UK in particular were out in force during April, May and June - and again in the autumn from October, with many spending twice as much as the average ski apartment buyer. The property buyers tend to head for different areas of Andorra, with the ski apartment buyers tending to purchase in the key ski resorts of Soldeu and Arinsal. Those looking for residency for tax reasons go more for the year round villages and towns which have a resident community. Outside of the capital (la Vella) these tend to be La Massana and the upcoming village of Anyos, Ordino and Arinsal, although Arinsal's nightlife during the ski season early December to late April tends to steer many newcomers to La Massana and Ordino. It's early days in the global slowdown of easy credit and fast loans, and while London and New York are the main players in the banking game, countries as small as Andorra will be trying to avoid any major impact on their domestic banking systems and real estate markets, although in the medium and long term that might prove just impossible to achieve.<br><br> <h3>About The Author</h3> YourAndorra provides information about Andorra banks at http://www.yourandorra.com/banks and property information is at http://www.propertyandorra.com<br><br> Keywords: <b>Banks, banking, tax haven, recession, interest rates, New York, Dow Jones, Andorra</b> <br><br>Article Source : <a href="http://americanahost.com/articles"><b>Articles Directory</b></a></br> Article URL : <a href="http://americanahost.com/articles/finance/banking/us-banks-hit-euro-tax-havens.html" target=_blank>US Banks Hit Euro Tax Havens</a></br> Article Category : <a href="http://americanahost.com/articles/finance/banking/">Banking</a></br> Article Author : <a href="http://americanahost.com/articles/profile/tribune2-60.html">Tribune2</a>

---

Article URL : US Banks Hit Euro Tax Havens
Article Category : Banking
Article Author : Tribune2