The U.S. Federal Reserve said Monday it will extend to mid-2010 an emergency program aimed at boosting lending in the ailing commercial real estate market.
This is an important move for the Commercial Real Estate sector of our economy. This extension is until June 30 2010.
Like on the Real Estate House Market, now Commercial lenders are reluctant in refinancing loans done under easy terms and built on expectations of increased sales revenues and rents . It is calculated that Revenues are down 35% nationally putting borrowers in difficult position to either increase equity or try to refinance.
This is an important move by the Feds since lately there is a lot of speculation about the danger to the Recovery of the US Economy if Commercial Real Estate Fails.
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