Segregation, housing market segmentation and the origin of the over indebtedness

Transcription

1 Segregation, housing market segmentation and the origin of the over indebtedness The access to homeownership by foreign migrants based on overindebtedness 25th ENHR Conference (Tarragona, 2013) Albert Terrones Ribas Grup d Estudis d Immigració I Minories Ètniques Universitat Autònoma de Barcelona This is a draft unfinished version. The full research is available at (in Spanish):

2 Content 1. Presentation Segregations as a result of the segmentation of the housing market The case of the Filipino community in el Raval: challenging segmentation? The role of the choices and networks Escaping from the residual segment or accessing to a new one? But how did they manage to access to home ownership? The role of real estate agents: "Buy it now, because there are three who want to buy " The role of Banks: "The whole community has bought without money" Final remarks: the origin of overindebtedness... 20

3 1. Presentation This paper is partly based on the results of my PhD thesis about the explanatory factors of residential segregation of immigrants in the city of Barcelona. This research raises the overall aim of identifying explanatory factors and mechanisms that determine the patterns of ethnic segregation in cities from a case study: the Filipino population in the neighborhood of Raval. The main hypothesis suggest that the residential conditions must be explained not as a result of the preferences and needs of individuals, but as a result of a number of constraints to this power of choice of individuals. The combined effect of these constraints gives rise to what it has been defined as segmentation of the housing market. The methodological approach of the research presents two approaches: quantitative and qualitative. The quantitative approach analyzes the situation of all immigrant groups, with greater attention to information relating to the case study (the Filipino population in the Raval). The qualitative approach focuses on a specific case study: the Filipino population resident in the Raval district of Barcelona. The qualitative work in the neighborhood is through from semi structured interviews with three groups of informants: residents from the Philippines, real estate agents and other informants privileged This paper develops some of the conclusions of this research. In particular, it focuses on the role of the access to home ownership in the definition of ethnic segregation patterns in the city and its impact on housing exclusion of migrants. It starts by defining the concept of segmentation and its application to the changes in the socio spatial configuration of the city of Barcelona. After that, the case of Filipino community is presented asking whether it confirms or not the use o segmentation as a variable for the analysis. After considering the role of choices and networks, the factors leading and enabling their access to homeownership are exposed highlighting the role of banks and real state agencies. Finally, it is commented how this example is useful to understand the critical current situation of the Spanish economy. This paper is not written to be published but it is created ad hoc to discuss these findings among the members of the workshop. The full academic research and bibliography can be consulted in:

4 2. Segregations as a result of the segmentation of the housing market Segmentation is a key concept in this research. Segmentation refers to the idea that there is no single housing market but a plurality of distinct segments with different barriers among them. The number of segment that are accessible by individuals depend on their economic resources (accessibility barrier) but also on other constraints like discrimination o administrative barriers. This concept suggests that only a portion of the housing is accessible to the immigrant population (residual segment). Segmentation structure housing market and especially the location and characteristics of the residual segment of the market is a key element in explaining the residential conditions of the immigrant population as well as their patterns of segregation. Segmentation of the housing market 1 This is a model of analysis that emphasizes the functioning of the housing market as the main explanatory variable of the residential conditions of people of immigrant origin and especially segregation. This is a model of analysis that emphasizes the functioning of the housing market 1 Translation (from above) : Housing supply/ accessibility frontier/ accessible segment in economic terms / regulatory and social barriers / residual segment

5 as the main explanatory variable of the residential conditions of people from immigrant backgrounds and especially, segregation. In this sense it is an approach closer to that of Harvey which states that the transfer of the social structure to the territory is done primarily through the commodified production of land and housing (1979 [1973]). The market segmentation conditions of housing in the city of Barcelona have experienced a strong transformation in the last years. Until the 2000s, the residual segment of the housing market was composed of unoccupied dwellings in poor state of conservation and mainly for rent located in Ciutat Vella (the inner city), especially in the Raval. This prompted the Raval to become the main city s gateway for the various waves of immigration that city's has known. As a result, the patterns of segregation for all groups of immigrants until 2001 show a pattern of greater segregation based on their higher concentration in the city center (and specially in El Raval figure 2, number 3). The following map shows how in 2001 foreign population was concentrated in the city centre appearing as well in the richest neighborhoods (left side of the map) because of the effect of house workers. Figure 4, shows how the number on foreign citizens grew faster in El Raval than in the rest of the city. Level of over representation of foreign population. Barcelona El Raval is the neigbouhood number 4. The inner city correspond to numbers 4, 3 and 2

6 Figure 3: Percentage of foreign population in el Raval and in Barcelona. However, from mid 2000 s, the residual segment of el Raval shows evident signs of saturation as a result of the intense urban renewal policy, the increase in the competition in the housing market for most affordable options, the increase in the number of foreign people, etc. As a result, housing prices in the Raval grew above the average of Barcelona forcing an inverse filtering process in the housing market and starting the process of population change known by the name of gentrification. Average price of the business premises. Barcelona and Raval.

7 Average price in the rental market. Barcelona and Raval. As a result of the sharp increase in the prices, the residual housing segment in the Raval becomes saturated. In late 2007, most of the housing market of the neighborhood is outside the residual housing market at least in relation to price. The cheapest options for accommodation in the city of Barcelona, whether in ownership or rental, are not any more in the Raval neighborhood. As an indicator both the prices of rental housing market and the market of business premises became higher than the city average. A second consequence of this strong growth in the prices is the overvaluation of the housing market. The officers interviewed identified this phenomenon already in 2007 and considered the price of housing in the neighborhood as "irrational" as it was in no way justified by the state or characteristics of housing. Even some perceived this overvaluation as a danger for the real state sector. This example shows that in a segmented housing market, markets interact and compete, filtering dwellings from one segment to another. Once the Raval lost an important part of their reception capacity for new immigrants and, new "residual segments" appear in other areas of the city which translated into a change on segregation patterns of immigration in the city. From this interpretative model, the origin of the differences in the residential conditions between different groups is explained as a result of the relationship between housing market segmentation situation and the time of arrival. Those groups that came to the city earlier (like Filipinos) are those who are more likely to settle in the inner centre (the traditional residual segment). Conversely, those groups that came later are those who have sought to settle in other segments of the housing market, in other neighborhoods. One of the best examples of these new host neighborhoods is found in Ciutat Meridiana (figure 1, in the top of number 28). As a

8 result of its location and characteristics of the housing market (mainly consisting of owneroccupied dwellings) the neighborhood had remained aloof from the arrival of immigrant population. The incorporation of immigrants is produced much later and in a more intense way, starting precisely from the saturation of traditional residual segments like the Raval. Thus, the percentage of immigrants in Ciutat Meridiana was 0.58% in 1991 and 2.55% in In 2006 the figure jumped to over 30%. It is precisely the groups that have come to town later (as the Ecuadorians) who are more likely to settle in this neighborhood. Percentage of non eu population. Barcelona 2012

9 Figure 3: Percentage of non eu population. Raval 2012 Reflecting these new patterns of segmentation most of the groups experience a process of desegregation a process (better distribution) and deconcentration (less presence in the city center). However, this more uniform distribution of the different groups in the city should not be interpreted triumphalisticly for two reasons. The first, research shows that this is not the result of a process of assimilation and social mobility but a result of the new patterns of segmentation of the housing market which result in a worsening of residential conditions of the immigrant population. As Arbaci recalls, "often a better distribution patterns can hide important phenomena of exclusion"(arbaci, 2004).

10 Dissimilarity index for several groups Barcelona Tabla 6: Índice de disimilitud para diferentes grupos Barcelona UE No UE Filipinas Ecuador Paquistán Marruecos Honduras ,69% 38,24% 82,33% 68,69% 82,36% ,65% 35,25% 85,15% 93,19% 75,86% ,37% 33,73% 82,61% 57,95% 87,06% 67,35% ,31% 26,01% 80,95% 39,68% 80,72% 60,70% ,97% 27,88% 79,25% 38,29% 76,73% 56,73% 76,95% ,79% 30,34% 79,76% 40,54% 75,74% 54,35% 73,38% ,39% 30,60% 79,31% 41,04% 75,95% 55,41% 68,88% 2009[1] 26,57% 29,09% 75,54% 36,81% 71,46% 51,08% 58,62% ,00% 75,00% 37,00% 66,00% 48,00% 50,00% Furthermore, it cannot be considered that the concentration of immigrants supposes by itself an indicator of residential exclusion (Musterd, 2003). New patterns of segregation have impacted and strengthened the existing patterns of social segregation in the city of Barcelona. Ethnic segregation and social segregation overlapping are increasingly contributing to create an increasingly fragmented city. Those socially segregated neighborhoods have become the new gateway (residual segments) for migrants. So far, precisely because of the high proportion of existing owner occupied dwellings in these neighborhoods, the percentage of immigrants had remained low until the mid 2000s. As Garcia states, "if the city of Barcelona established itself as middle and upper class city, on the one hand, and the first settlement for immigrant workers without political rights, on the other, the challenges of social cohesion may increase dramatically" (2008: 112). The author adds that this situation brings new forms of urban citizenship involving actors without political and economic citizenship. Undoubtedly this is a fundamental challenge of the city worsened due to the current economic crisis.

11 Figure: Model of analysis Cultura de vivienda Proyecto migratorio Proyecto familiar Normativa de reagrupación. Dinámicas del mercado Política de vivienda Política urbana Demografía Estrategias de evitación... Necesidades Aspiraciones Prioridades Preferencias Precio y características de la oferta Elección residencial Segmento residual del mercado de la vivienda Recursos Disponibilidad para la población inmigrada Redes sociales Mercado de trabajo Política de extranjería Papel de los bancos... Diferencias en las condiciones residenciales: - Segregación - Viviendas - Hogar Agentes del mercado de la vivienda Redes Sobrecote The case of the Filipino community in el Raval: challenging segmentation? Filipinos represent a relatively small group among foreigners of Barcelona despite being one of the groups with a longer stay in the city and one of the most aged (32.8% of Filipinos of Barcelona were over 40 years in 2010). The first Filipino migrants arrived in Spain in large numbers from the 1960s, when a group of domestic workers migrated to Spain to work with employers who had been in the Philippines (Ezquerra, 2008). Historically, it has been a highly feminized group recruitment linked to the in the origin of domestic workers by upper class families Barcelona among Filipino workers whom represented a real symbol of status. However, in recent years, the hospitality industry has become the main employer of Filipinos in Barcelona. Family reunification has helped to balance the number of men and women in the group (54% female, 46% male). Residential behavior of this group is a special case. Filipinos are one of the groups that have a higher level of segregation and a higher level of concentration in the Raval. Thus, in 2009, according to registry data, 52% of Filipinos of Barcelona and 35% of those were residing in the Raval in Catalonia, especially in the area near Paloma Street (Tigre, Lleó Valldonzella, Joaquim Costa, etc.) in black in next map. They are the second largest foreign group of neighborhood (4.450 people) after the Pakistanis. As an illustration, the Filipino population in 2006 was only

12 0.4% of the population of Barcelona. However, in the three statistical sections near Paloma Street, represented between 28.5% i 25% of the population of that section. In these sections, Filipinos are the largest immigrant group representing between 60% and 40% of foreigners in the area. Figure: Over representation level. Filipinos The high presence of Philippine population is evident both in the public space, such as the extensive range of businesses run by Filipinos or the presence of ethnic institutions (associations, places of worship, etc..).

13 But what is really characteristic of this group is the "resistance to displacement" in front of the hardening of the conditions to access to the housing market. In aggregated terms, Filipinos have maintained their presence in the neighborhood more "successfully" than other groups that had traditionally resided in the neighborhood (Pakistanis and Moroccans). As an example, while between 2001 and 2009, the index of dissimilarity fell by 16 points between Pakistanis and Moroccans, and 21 points among Ecuadorians. Conversely, the reduction was only 7 points among Filipino immigrants. In turn, the percentage of immigrants living in Ciutat Vella decreases among Pakistanis 36 points and 17 points among Moroccans, but only by 7 points among Filipinos (in addition, it did so later). As a result of factors such as the increase of prices in the housing market of Raval, the block of the rental market (caused by discrimination) or the saturation of residual segment of the housing market, we would have expected a higher level of displacement to other areas with conditions more favorable housing conditions. Although in areas like Zona Franca or Hospitalet new concentrations of Filipinos appeared, it also increases the number of people of Filipino origin residing in el Raval and specifically in the area close to Paloma Street. The segregation and concentration level is maintained in that area. This contrasts with the behavior of other immigrant groups that have experienced an obvious process of deconcentration and abandonment of Raval from the year 2001 as temporary or permanent settlement area. 4. The role of the choices and networks Which is the cause of this resistance to de segregation demonstrated by the group of Filipinos? How has they managed to remain and expand its presence in the housing market not adapted to the characteristics of the group (income)? Fieldwork shows that there is no single answer for this but a set of responses that should be considered together. The first answer is the fact that there is indeed at least by a significant percentage of the community a clear desire to reside specifically in the Raval, in area near Paloma Street. This choice of location is based mainly on the existence of an explicit desire to maintain closeness with the community. The discourse used is very close to that proposed by classical ecological approaches: the community provides a space for tolerance, security, companionship and recognition. It is a highly institutionalized community in the neighborhood with businesses, associations, churches and even a school. The proximity to the community provides easier access to social capital provided as well as networks and information channels. Thus, preferences play an important role in determining the segregation patterns of Filipino group. There is indeed a choice to reside in that specific area even assuming that this preference involves accessing to more expensive houses with worse living conditions. In fact, the area close to Paloma Street where most Filipinos concentrate is not one of the cheaper areas in el Raval. Surprisingly, despite the importance given to saving and capital accumulation in their migration projects, residential choices doesn t seem to follow a strict economic

14 rationality of cost / utility. It is also questionable that the cost associated with mobility to their workplace (as they tend to work also in the city centre) justifies the enormous cost which means living in that area. However, there are elements that distort the ability to make rational choices in economic terms. The first is the lack of understanding of how the financial sector works. The second is the difficulty in accessing good quality information. A general feature of the housing market is the fact that it is an imperfect competitive market in which residential choices are not formulated never on terms of perfect information to ensure the efficient allocation of resources. Furthermore, in the case of Filipinos, these distortions in the information are exacerbated by the influence of real estate brokerage companies and social networks. For its part, networks appear as the main source of information of respondents. Network dependence acts as an information filter and as a limitation and distortion of the information on the housing market. Particularly interesting is the tendency of networks to provide information about the nearest, which contributes to maintain segregation. The role of networks in maintaining segregation does not end here: they have a key role in controlling the housing market (they even have their own real state brokerage companies) or the development of an informal market of bedroom subletting in the neighborhood. 5. Escaping from the residual segment or accessing to a new one? This choice for self segregation, either economically rational or not, either more or less induced, does not explain how it was possible for them to remain in the neighborhood after the disappearance of the traditional residual segment that absorbed the first residents. As it is explained in the full dissertation, this has been possible by the access to two new segments of the housing market, closely related each other. First, there is an expansion of the informal market of room subletting which implies densifying the existing supply. This market has helped to absorb a high percentage of new residents in the neighborhood. Hiring a room, or even a bed for some hours, is an option that suits better than other to a significant portion of the immigrant population: it can accommodate both people who cannot afford an independent dwelling as well as people who "do not need" or do not want an autonomous dwelling as it not a priority in their migratory path (for instance, domestic workers residing in the employer house). Second, in addition to this densification of the housing stock, the continuation of the concentration in the Raval has been possible through the massive access to a new segment of the housing market: the market for owner occupied housing. We have shown how this access contrary to the claims of much of the scientific literature can not to be interpreted as a manifestation of residential success or as an indicator of integration into the host society.

15 Access to home ownership is essentially a forced alternative in front of the residential block of other options better suited to the economic characteristics of the household and immigration project priorities. This access cannot be considered either as a break or as an overcome of the residual housing segment. Homeownership may also be part of the residual segment of the housing market. This is precisely the case of owner occupied housing in certain areas of Raval: old housing in buildings near the end of its useful life without basic facilities in areas experiencing population changes. But above all, these are dwellings with obvious signs of overvaluation already at that time ( ) that are rejected by the autochthonous purchasers with a wider range of residential options. To properly understand the massive access to home ownership, we also have to pay attention to several factors acting as stimulators of this process. It must be noted that they are accelerators elements, not causes. The causes are, as explained, the lack of alternatives and the location preferences. The first of these factors is the generation and dissemination of what we have referred as the "myth of home ownership" actively spreaded in the community, real estate agencies and banks. This myth is based on an uncritical belief in a set of axioms that define owner occupied housing as an asset that provides continuous and unlimited revaluations readily convertible into cash. The second is the rules on family reunification. The need for an "adequate" housing for eligible families, generates an urgent pressure to obtain "papers" (in this case a rental or a property contract) quickly, stimulating the adoption not very rational decisions. Due to the block of the rental market, the property is presented to them as the most easily accessible option. 6. But how did they manage to access to home ownership? The explanation offered so far does not give a satisfactory answer to the question of how it was possible for Filipino migrants accessing to home ownership just the time when prices were at their maximum. In the previous years, this segment was clearly inaccessible to migrant population as a result of its high price. In fact, as we said, housing prices in the Raval in 2007 were above the purchasing power of middle class family, either immigrant or native. The access to home ownership requires in all cases a volume of resources much higher than other tenures. Then, how did they manage? The explanation is twofold. First, because of the link between homeownership and the development of the bedroom hire market. The increase in resources devoted to housing for households that purchase a flat was bearable only through an increase in their income through work (self exploitation) or by subletting the apartment (including joint purchasing strategies between different people or families). Therefore, the cost of housing is not interpreted only in terms value of use but also in terms of profitability or exploitation. The homeownership is not synonymous with single family

16 living. In fact, usually the opposite happens: to access the property families need to sublet all the spaces that they could (not only proper bedrooms) causing overcrowing. This relationship between both markets is one of the elements that explain the maintenance of segregation: to rent the rooms with a high price, they should be located in areas where there is demand for this form of accommodation. This area is again where the Philippine population is concentrated. It is a two way relationship: on the one hand, the rental of bedrooms allows the purchase; on the other, acquisition expands the bedroom rental market. Secondly, the configuration of the residential situation of the Filipino population in Barcelona and, in particular, their access to the segment of owner occupied housing can not be understood solely as a result of specific market conditions. On the contrary, it is very important to attend to the action of various agents that shape and mold this market both directly and indirectly: governments, developers, builders, real estate brokerage agencies, banks, financial institutions, investors, etc. According to Gotham (2002) the housing market does not respond exclusively to consumer demands but also provides incentives and opportunities that drive and shape the behavior, preferences and choices of these. In this section we will focus on the role of real estate agencies and banks. The first play a key role as incentive mechanism and at the same time, blocker in access to different market segments. The latter are also an enabler The role of real estate agents: "Buy it now, because there are three who want to buy " Real estate agents contribute to block the rental market by developing discriminatory actions against the immigrant population. The same agents play an important role as a stimulator of the access of Filipino community to owner occupied housing. This role is developed from two mechanisms. The first, by spreading and amplification of discourse and myths about owner occupied housing (the price always grows, it is a good inverstment). The second, motivating and encouraging the access of this population to homeownership market only in certain areas of the neighborhood. This is what the literature defines as Racial Steering, a process which seeks to address each profile of demand to a particular type of location. There is an evident economic interest" by real estate agents to attract and direct Filipino customers to this area. It is based on the gain resulting from the Filipino location preference. Because of this preference to reside in this specific areas of the district, Filipino customers are

17 more willing than other groups to purchase a home in a particular area of the district. There is an interesting economic phenomenon whereby a part of the market value of dwellings in the neighborhood does not depend on its characteristics or its location but on the type of buyer. A Filipino is willing to pay much more than a native for the same flat. Futhermore, natives were already refusing to buy a house in this area considered as an overvalued market with unrealistic prices (housing bubble). Given this scenario, real estate agents in the neighborhood and even the banks themselves have developed strategies to address some segments of specific supply and demand. This specialization is evident from its location, the existence of advertising slogans in different languages and types of homes offered to each client. Along with this specialization real estate agents develop proactive and aggressive marketing strategies to target this particular segment of the demand and routing it to most profitable market segment. The most obvious strategy is the incorporation of personnel from the same countries of their target customer (we have identified in the district three real estate agencies ruled by Filipinos and at least three that have employers from the Philippines) with the aim to encourage confidence by the client. Another strategy is the provision of information fragmented or editing information material specifically geared to specific groups. Real state agencies ruled by filipinos in el Raval.

18 6.2. The role of Banks: "The whole community has bought without money" But over the role of real estate agencies, the role of banks is essential to understand the current features of the residential conditions among the Filipino population. Mass access to homeownership has been only possible through the extreme facilities offered by banks in the access to the credit. We wish to emphasize the impact that financial arrangement has on the perception of the real cost of housing and the perception of risks. While the cost of housing is usually clear and fixed at the time of purchase, it is harder for the purchasers to understand the cost of mortgage associated with the dwelling that they buy. Among the interviewees, concepts like "round mortgage " or "hire purchase" appeared showing the existence of these financial illusions that cover the real risk of the operation. The clearest example is found in the confusion between housing price and the initial mortgage payment, the risk of an increase in the interest rates or the ignorance of the consequences of not being able to pay the mortgage. Of course, financial institutions developed strategies to force to the maximum the indebtedness capacity of buyers. The first one was the provision of credit by the total amount of the transaction and even beyond that allowed buyers to access to homeownership without the need for prior savings. This financing 100% could be achieved in the best case through the mortgage or in the worst by complementing the mortgage with a personal loan (with an interest rate much higher) awarded by the bank itself or by a financial company (often linked to the first bank). It is customary, as mentioned, that the transaction includes the purchase of a home in the Philippines financed by the same mortgage (see figure below). The second way to facilitate credit was by accepting unrealistic guarantees. The most common mechanism is the inclusion in the title deed of a large number of people even without family ties among them. Another mechanism is the use of guarantors. The agents interviewed agreed that until 2007 there was little control over the reliability of the guarantors. This lack of control favored that the same person appeared as guarantor in a large number of operations and even it stimulated the emergence of guarantors "market" with professional guarantors willing to act as guarantors in a mortgage in exchange for a sum of money (3000 at the time of completion of the field work). These guarantors were sometimes obtained through the bank or the real estate company. However, in most of interviews the guarantor belongs to the community acting in terms of reciprocity and giving rise to a real chain of guarantors. The guarantees, despite the obvious risk they pose, are formalized even among people without kinship.

19 Fourthly, there are also examples in which financing is granted to people who have not established a clear economic solvency both due to their working conditions as due to age. A final problem is the little objectivity in the use of appraisals. As recognized by the agents interviewed, appraisals were in line with financing needs on demand of the banks themselves who consciously distorted in this way their own control mechanism. Due to these financing facilities for many interviewees it was even easier accessing to homeownership than to the rental market (for example, because there was no need for downpayment. Branch office of filinvest in el Raval. A company offering housing investments in Philippines Imagen 1: Sucursal de la empresa Filinvest. Calle Valldonzella. Barcelona.

20 7. Final remarks: the origin of overindebtedness The access to homeownership has enabled the Filipino community to remain in the neighbouhood influencing the maintenance of its high level of concentration in el Raval. This is presented and discussed (in the dissertation) as an example of how the agents of the housing market can influence on the segregation patterns. But this access has taken place in the worst moment, when the overvaluation of this segment was evident for the rest of the buyers (autochthonous and investors). Actually, prices were

21 kept high artificially thanks to the access of new Filipinos to homeownership in what it seems a pyramidal swindle. The access to homeownership by the Filipino community transformed the characteristic of their residential exclusion patterns. In last decades, the issue of immigrant housing was the substandard physical conditions of their houses and sometimes overcrowding. Nowadays the main issue not only for Filipinos in overindebtness. With the arrival of the crisis, a large number of migrant lost their job failing to pay their debts and being evicted from their homes. Moreover, in Spanish law the assignment in payment is not recognized. It implies that if you fail to pay your debts the bank auctions your house and, if there is nobody interested (it is a common situation), the bank obtain the house for the 60% of their value. This means that the mortgager/s as well as the guarantors still owe to the bank the rest of the debt plus all additional costs coming from interest, etc. Even returning to their country the bank will persecute them to obtain their money. The result is that a large number of these homeowners are now in risk of social exclusion due to housing (from exclusion to housing to exclusion from housing). Just an example: In 2007, the interviewed F25 (Female 35, Homeowner, arrived in 1987) obtains financing for 282,000 to purchase a house valued in 266,000 in el Raval without any down payment. The transaction includes the purchase of a house in the Philippines. The initial fee amounted to 1000 despite a year later amounted to 1,500. Marriage revenues amounted at that time to 2,300 which represent and economic effort of 43% initially and 65% a year later. The F25 s sister also appeared in the title deed as owner although she was not living in the house. Finally, a wedding goddaughter was acting as a guarantor. At the time of the interview (2010) they both had lost their job. What I would like to highlight is how this example is useful to understand the critical current situation of the Spanish economy. The strategy of the banks in el Raval is just an extreme example of what it has been a common behavior throughout the country.