Mipim preview: 'It's not a liquidity but a solvency problem'

A panel at this year's Mipim devoted to lending is certain to generate a range of opinions. According to one of the panellists, Michiel Rang, CEO Europe and Asia at ING Real Estate Finance, it is first of all necessary to properly identify the problem.

'The most important action is to get the financial sector working again. It’s not a liquidity problem. It’s a solvency problem. The real estate sector has been very efficient in many ways. It's not a real estate problem,' Rang says, adding, 'Unlike the residential sector in some countries, the commercial sector has seen little or no overbuilding.' According to Rang the structures to support sector lending are already in place and there is no compelling reason for governments to address any sweeping changes. 'Governments must focus on the overall problem and can then finetune to ensure that more private money comes to the sector,' he says.

'The most important action is to get the financial sector working again. It's not a liquidity problem. It’s a solvency problem. The real estate sector has been very efficient in many ways. It's not a real estate problem,'Rang says, adding, 'Unlike the residential sector in some countries, the commercial sector has seen little or no overbuilding.’ According to Rang the structures to support sector lending are already in place and there is no compelling reason for governments to address any sweeping changes. ‘Governments must focus on the overall problem and can then finetune to ensure that more private money comes to the sector,' he says.

The full preview of the session appears in PropertyEU Magazine. Click on the link below to suscribe.

Preview details:

Who: Michiel Rang, CEO Europe and Asia, at ING Real Estate Finance
Session: On the Road Again: Who’s Lending Now?
When: Thursday 12 March, 14:15 - 15.15
Where: Auditorium A, Level 3