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Banks tighten purse strings for holiday property investors

Having already cut down on loans for littoral holiday developments, Bulgaria's risk-averse banks are now doing the same investors trying to raise funding for ski resort projects, Dnevnik daily reported on March 7.
One of the reasons is the sharp decline in the uptake of resort holiday homes over the last 7-8 months, caused to some extend by the pullback of British home buyers. Money institutions have been shying away from ski resort developments in the past several months, as quoted by the paper. Krasimir Dimitrov from real estate developer Source concurred, saying that the banks were being too cautious.
According to Tihomir Toshev from a company for real estate, it would be an overstating to say that loan-financing has completely dried up when lenders are simply being more cautious and risk aware.
In the Black Sea resorts, the exodus of British buyers was partially offset by demand from Russians, Ukrainians and buyers from Scandinavia but the deals in the ski resorts have plummeted tenfold, said Stoyanov.