The EC gives green light to Vauban, Crédit Agricole’s entry in Telefónica’s rural fibre optic arm

Bankinter | The European Commission (EC) has authorised the entry of Vauban Infrastructure Partners and Crédit Agricole in Telefónica’s rural fibre optic affiliate. The company, called Bluevia, will have the 3.5 million premises which has the group’s fibre optic and will roll out an additional 1.5 million fibre optic connections in the next two years. Bluevia will also signs provision of services contracts with Telefónica. The consortium formed by Vauban and CA…

Current EU major challenges-Brexit and Italy budget- move but still remain stranded

The Cut In Spain’s Current Rating Could Lead To A Downgrade Of Over 50% Of Companies In 18 Months

Moody’s points out that Spanish public debt is at maximum levels for a century. Thus, it will take into account in its next rating reviews whether the Spanish government presents a credible plan to reverse the fiscal deterioration aggravated by Covid-19. A downgrade of the current rating (Baa1 with a stable outlook) could lead to the downgrade of more than 50% of Spain’s companies’ in 18 months. Even so, this warning is not exclusive to Spain (public debt/GDP 120%), as there are other countries with high debt problems (Italy 158%, Greece 200%, Portugal 137%).

conte sanchez 1

Italy And Spain, The Countries To Benefit Most From The Recovery Fund: €172.8 Bn And €140 Bn, Respectively, Between Transfers And Loans

The Recovery Fund exceeds the Merkel/Macron proposals with an amount of €750 billion euros (equivalent to 5.4% of the EU27’s annual GDP). Italy and Spain would be the countries to most benefit. This was something that was quickly reflected in the performance of peripheral credit on Wednesday, especially in the financial sector, with improvements on average of about 10bp in the CDS of banks in both countries. For its part, France and Germany will receive transfers of 39 Bn and 29 Bn, respectively.

spain coronavirus package

Spain Commits 20% Of Its GDP To Fighting The Ravages Of The Coronavirus; Shock Plans Multiply Around The World

The current scenario forces stimuli and, at last, the Eurogroup is beginning to propose some important measures such as the agreement to promote fiscal measures throughout the Eurozone worth 1% of GDP in 2020, or guarantee schemes and tax deferral equivalent to 10% of GDP. Furthermore, Spain’s Prime Minister, Pedro Sanchez, announced a much more ambitious plan, mobilising up to 200 Bn euros, of which 83 Bn euros will be private, mainly from banks. The shock plan is equivalent to 20% of the national wealth (11.7% taking into account the State’s share). 

Spanish households savings

Spanish Household Debt Continues To Fall: 61% Of GDP (Down 3%)

J. L.M.Campuzano | Spanish household debt continued to reduce in 2017, reaching 61% of GDP (down 3%), according to the Bank of Spain. It has fallen 24% since its máximum level reached in 2010. Company debt at the end of the year amounted to 78% of GDP, with a fall of 5% over 2016. Company debt has fallen 39% since its maximums.

Spanish SMEs provide jobs for 71% of social security contributors

Spanish SMEs still need clients but their access to funding has improved

J. L. M. Campuzano (Spanish Banking Association) |What is the main concern for Spain’s SMEs? The lack of clients. This is what they have revealed in the latest survey published by the ECB, covering the period from October 2016 to March 2017. And what about financing? It was once again the least of its worries, something which has been the case since the start of the year.


Improved SME financing in Europe

As a result of the global financial crisis, funding conditions for SMEs in the peripheral European countries tightened considerably. But following the implementation of expansionary monetary policies, including TLTROs and negative interest rates, has loan activity improved for small businesses in countries like Spain, where they are key drivers for economic growth and job creation.