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Andorran banks assure they have no funds affected by the subprime

02/01/08 - High risk mortgages are shaking the US and have also provoked problems in some European banks but this will not have a repercussion in Andorra. Financial entities of the country say they have not invested in the North American real estate market.

Subprime mortgages do not exist in Andorra. The requirements demanded by national financial entities for mortgages do not permit the creation of high risk mortgages and the non-payment of mortgages continues to be very low. Requirements are now more difficult.

For example, a loan for over 80% of the cost will not be granted. The Euribor, the index for mortgages, ended the year at 4.8% and the uncertainty of whether it will continue rising will also put a break on mortgages granted.

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