'Naive' builders face home truths in battle with banks
The fine print of banking deals offer little comfort to hard-up property developers, reports Jerome Reilly
Published 04/04/2010 | 05:00
THEY were known simply as "PGs" or "personal guarantees". In the good times banks fell over themselves to advance millions to developers.
Where those loans were to be used to buy property, the banks would take a charge over the property as security, a commercial version of the ordinary house mortgage.
But much of that property is now worthless, so how are banks to recoup their money?