Tunis:Outstanding loans to risky real estate development projects decreased in the second quarter of the year, as sell-offs and recapitalization efforts took effect, According to financial watchdog.
According to Yonhap News Agency, the Financial Supervisory Service (FSS) reported that 15.1 trillion won (US$11.3 billion) in loans extended to real estate projects were considered risky by the end of June. This figure represents a reduction from 16.4 trillion won at the end of March.
The end-June figure accounted for 9 percent of the total financial institutions' exposure to real estate development, which was 168.8 trillion won. This also marks a decline from 9.6 percent and 169.8 trillion won, respectively, at the end of March last year.
The financial watchdog also noted that the remaining risky project financing (PF) loans will undergo restructuring. PF loans have been a persistent concern in the financial market, as an increase in non-performing loans beginning in late 2023 raised fears of potential harm to financial institutions and overall market stability.