Stronger credit lending in Spain… to the public sector

Credit lending in Spain

As you can see in the figure above, credit lending to the private sector in Spain is shrinking by 3% year-on-year, while lending to the public sector is up by 4.7% y-o-y.

So if someone wants to see a significant impact from Draghi’s QE, as a result of which €5 billion have been injected into the Spanish economy since March, that will require some effort. €5 billion is only 0.5% of Spain’s GDP. The US Federal Reserve, the Bank of England and even the Bank of Japan hold more than 25% of their goverments’ GDP in debt.

About the Author

Miguel Navascués
Miguel Navascués has worked as an economist at the Bank of Spain for 30 years, and focuses on international and monetary economics. He blogs in Spanish at: http://

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