Vast majority of property auctions produce no result

Roughly eight in every 10 real estate auctions end up fruitless, making it difficult to effectively resolve the problem of private debt.

This is what the European Commission pointed out in the report it published on Wednesday on the post-bailout assessment, noting that private debt may have left the banks’ balance sheets, but it continues to pose a significant challenge to the economy.

A collateral consequence of the limited effectiveness of the electronic auction mechanism is the lag from the goals that the servicers must achieve in the context of the Hercules scheme. Therefore, according to the Commission, measures to correct the situation should be taken.