Loan-to-value of a house with an asking price of EUR 50,000, financed with SRD 1.6 million under the 7 per cent facility
Loan-to-value of a house with an asking price of EUR 50,000, financed with SRD 1.6 million under the 7 per cent facility. Worked example at the latest available daily rate (28 August 2026, mid rate (bank transfer)), with an unchanged euro-dollar rate. Scenario B follows the 14 per cent from the IMF downside scenario in chapter 9; the 10 per cent appreciation in scenario C is a calculation assumption by PAM, because chapter 9 does not quantify that scenario. The euro price is held constant; if it falls in scenario B, as chapter 9 expects, the improvement in the coverage ratio is smaller. With a loan in euros, the loan-to-value remains 74 per cent in all scenarios, but the borrower's SRD payments rise with the exchange rate.
| Situation | Rate SRD/EUR | Collateral value in SRD | Loan-to-value on a loan of SRD 1.6 million | Payments of a borrower with a foreign-currency loan and SRD income |
|---|---|---|---|---|
| Base case (rate 28 August 2026) | 43.3 | SRD 2.17 million | 74% | Base |
| Scenario B: euro 14% dearer | 49.4 | SRD 2.47 million | 65% | +14% |
| Scenario C: euro 10% cheaper | 39.0 | SRD 1.95 million | 82% | −10% |
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PAM Research & Analytics (2026). Loan-to-value of a house with an asking price of EUR 50,000, financed with SRD 1.6 million under the 7 per cent facility. In: Why SRD property prices mislead. https://pamnv.com/data/en/loan-to-value-of-a-house-with-an-asking-price-of-eur-50-000-financed.html