- Sees risks in global financial markets situation
- Sudden changes could destabilise markets
- Sees Spanish growth expanding at 1.2% in 2014
- ECB is extending generous liquidity provision policy
- Bad loans in Spain to decline with recovery
- Spanish banks must continue to cut costs and make efficiency gains
- Market fragmentation still exists in EU
- Spain still requires significant fiscal consolidation
Spain’s finance minister Luis De Guindos is also on the wires saying that the recovery is continuing and Q2 GDP will be at least as strong as Q1, with continuing export improvements.
Guindos has a good record for alerting the market on economic conditions so we can probably take his comments to the bank.
He continues;
- Must keep cutting private sector debt and public deficit
- Needs more growth for lending to increase
- Spain taking steps to preserve viable companies
- Will present new audit law
