Spain suffered the euro zone’s worst slump after the Covid-19 pandemic erupted -- but it would have been much worse without speedy action from the European Central Bank, according to a new study, Bloomberg News reported. The ECB’s bond-buying and liquidity lines kept credit flowing, sovereign-debt costs steady and permitted extra public spending, BBVA Research economists Sonsoles Castillo, Rafael Domenech and Miguel Jimenez said in the paper, published Tuesday.
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The impact of the pandemic on the productive fabric has caused that in 2021 a total of 5,496 companies in Spain have been doomed to bankruptcy, despite the fact that the government approved the granting of aid for companies affected by the pandemic and has kept the obligation for companies to present a tender when reaching a situation of insolvency and not being able to cope with debts, CVBJ.biz reported.
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Yesterday’s announcement came as sources claim the Barcelona-based aviation company were facing debts of up to €300 million, TNT Magazine reported. Lawyers for the company are reportedly keen to avoid being forced into involuntary bankruptcy by creditors. Last weekend saw travel chaos as close to 20,000 passengers were stranded with just a few hours notice. Spanair employs around 4,000 people and is the 4th largest airline in Spain.
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It was announced last week that an agreement between Barcelona and Man City regarding the transfer of Torres and now the deal is complete, Cheraw Chronicle reported. The original will be presented at the Camp Nou. Torres broke through against Valencia and marked the summer 2020 move to City. The English superpower has noticed the Spain international 22 times, despite suffering a foot injury since October. In Manchester he was good at scoring 16 goals. Barcelona are only seventh in La Liga and have failed to survive the Champions League group stage for the first time since 2000.
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Spain's government proposed on Tuesday to reform its insolvency law to simplify bankruptcy proceedings and meet a major condition agreed with Brussels to obtain European Union recovery funds, Reuters reported. The current insolvency system has been criticised by organisations such as the International Monetary Fund for being slow and convoluted, often driving companies to wind up.
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Andalusian bankruptcy has grown by 37% in the first eleven months of 2021 although this is still slightly behind the national average of 40% that the data has shown so far, EuroWeeklyNews.com reported. There have been 456 business tenders leading up to November and in the same period an increase of 19% on dissolutions bringing that number to 3,288. The numbers come from a study by Informa D&B SAU (MSE), which is a Cesce subsidiary company. Regarding the month of November, the concursos in Andalusia have risen by 32%, to 50, and the dissolutions have done so by 8%, to reach 309.
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Spain on Tuesday approved a year-long extension, until the end of 2022, to restrictions on foreign takeovers of Spanish companies it regards as strategic, Reuters reported. As part of measures to protect Spanish firms in the face of the coronavirus pandemic, Madrid imposed a process of authorization for the acquisition by a foreign company of stakes larger than 10% in companies considered to be strategic. The decision to extend the potential veto comes after U.S.
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Barcelona was technically bankrupt when president Joan Laporta took over earlier this year, the club said Wednesday, the Associated Press reported. Barcelona CEO Ferrán Reverter presented a grim picture of the club’s financial situation while releasing the results from a Deloitte audit that started after Laporta arrived in March following the resignation of former president Josep Bartomeu and his board of directors last year.
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The Commerce Court number 1 in Las Palmas de Gran Canaria agreed this week to declare necessary bankruptcy for tourism companies Anfi Sales SL and Anfi Resorts, The Canary News reported. There will be an appeal against that judgement heard before the Provincial Court, although it will not be suspensive; that is to say, it will not impede the judgement. Judge Alberto López Villarrubia accepted the request made last year by the company Isla Marina SL to declare the companies bankrupt.
Spanish airport operator Aena could lose up to 1.5 billion euros ($1.76 billion) of revenues between 2020 and 2025 after Spain passed a law on Thursday pegging retail tenants' rent to air traffic until footfall reaches pre-pandemic levels, Reuters reported. The much-disputed minimum annual guaranteed rents owed to Aena will be reduced in direct proportion to the passenger flow in each local airport, according to the text of the law, and will remain as such until travel returns to 2019 figures.