In Belize the LTV is at most 60%, but usually it's 50%.
If Bz-Bank loans 50% of an appraised value of a property, with the title as security, and charges 15% interest amortized over 15 years ..... and if this loan goes sour in say, 2 years and the bank forecloses ---- and then if the bank sells short for say 75% of the appraised value --- they still make plenty of money. This is even allowing for an appraisal that is on the high side at the inception of the loan.
on the last public auctions there was mostly no buyer, even below the 60% percent margin. My neighbor's home was auctioned 3 times, and they never reached the banks value..... at the end my new neighbor got the home with his bid.... even below the banks internal value.
With so much bad debt and so many properties under auction
(mostly 1-2 pages in the reporter newspaper) there is no much room for error .
It's funny that you guys always compare with the US, but keep in mind, the US banking system is a hot air balloon, I still keep my cash back in Switzerland where it always was.