30.09.2008 - Analysts worry about more French property damage
From Reuters: French property developers have been hit hard by the real estate and financial crises and with several bankruptcies already among regional players, analysts are worried about the potential for more damage to firms in the sector. While the big players are not expected to become insolvent, a slowdown in new building programmes could force them to attack cost levels in order to prevent margin erosion. "This is a sector that is worrying us. Adapting to the crisis can be very difficult, and the potential for bankruptcies is much higher than it was before. It is all going to depend on the ability of groups to reduce their exposure," said Nicolas de Buttet of credit insurer Euler Hermes. After a 34 percent year-on-year drop in new house sales in France in the second quarter, market conditions remained "very poor" in July and August.... Full Article: Source
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