Spain’s Banks Getting Europe Handout to Boost Business in Coronavirus Crisis

Sami James will be entertaining Credit: Sami James Facebook

SPANISH banks borrowed around €143 billion from the European Central Bank (ECB) in March, according to figures released by the Bank of Spain.

It’s the highest level of borrowing for six months, which has been fuelled by the coronavirus crisis.

In comparison though, it is a third of what they got from the ECB at the height of the recession in August 2012, when they were granted a record high of €411 billion.

The current loans are being used to prop up Spanish businesses and individuals during the country’s State of Alarm.

For example, CaixaBank says it has granted €8 billion to businesses to minimise the economic impact of the lockdown.

The bank provided businesses with loans during the period between March 16 and March 31.

It said that it aimed to drive a “speedy recovery of the Spanish economy,” by facilitating credit flow and supporting businesses.

The businesses that have received support included large companies, SMEs, self-employed workers and entrepreneurs.

In addition, CaixaBank has received over 90,000 loan requests from its clients, totalling over €8.5 billion.

The bank has also offered a rental payment holiday to eligible tenants of the homes owned by its subsidiary BuildingCenter, and has waived ATM fees for customers using machines belonging to other banks.

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Written by

Alex Trelinski

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