Who owes whom: indebtedness in Spain

Ángel Berges, vice-president of Afi, writes his 'Laboratory of Ideas' for El País about indebtedness in Spain. After years of crisis and stimulus, indebtedness in Spain shows a structural change. Households and companies have reduced their debt relative to GDP, while public debt has grown strongly, although it is beginning to moderate. The banking channel loses its role vis-a-vis the capital market: private debt is still banking, but public debt is almost entirely financed with securities (bonds and bills), largely in the hands of international investors. This new balance transfers the surveillance of financial sustainability from banks to markets, with the risk premium as a key barometer.

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