SPAIN Law and Practice Contributed by: Miguel Cases, Toni Barios, Joaquín Fabré and David Navarro, Cases & Lacambra
Cases & Lacambra Av. Diagonal 618 3rd Floor Barcelona Spain Tel: +34 936 119 232 +34 91 061 24 50 Email: spain@caseslacambra.com Web: www.caseslacambra.com
1. Loan Market Overview 1.1 The Regulatory Environment and Economic Background
1.2 Impact of Global Conflicts In 2022, ongoing wars have added to the inflationary pressures building up in the euro area, pushing up consumer prices (particularly energy and food pric- es), which forced the European Central Bank (ECB) to act firmly to ensure that inflation returned to its 2% medium-term target in a timely manner. Currently, the potential re-intensification or prolonga- tion of geopolitical tensions is the main source of risk to the projections on the inflation forecast for 2025 (as stated in 1.1 The Regulatory Environment and Eco- nomic Background ). Should this risk materialise, it could most likely have a negative impact on economic growth, as greater geopolitical uncertainty makes for a less favourable environment for investment and spending decision-making by economic agents, and may trigger episodes of financial market turmoil. 1.3 The High-Yield Market The stable Spanish bank loan market with experi- enced banks and borrowers remains dominant as the preferred option for Spanish companies to access debt. Traditionally, only large Spanish companies had the sophistication, the interest and resources to access high-yield markets. Although this option continues to grow, the minimum amounts that make this option cost efficient limit the number of potential candidates
The direction and trends of the loan market in Spain have been more impacted by recent economic devel- opments than by the regulatory environment. Spain’s GDP grew during 2024 by 3.2% and, accord- ing to the EU Directorate-General for Economic and Financial Affairs, the overall GDP growth is expected to reach 2.6% in 2025 and 2.0% in 2026, mainly driv- en by domestic demand and a projected growth in overall investment. In Spain, economic growth is set to be guided by local demand as a result of the increase in households’ real income, a distinct rise in net migration, a favourable monetary and financial environment, and an accelera- tion in the implementation of the Recovery and Resil- ience Plan (RRP). Spanish annual inflation was 2.9% on average in 2024, which was the same as the European Union annual inflation, favoured in part by the slow-down in energy prices. It is projected to further decelerate in 2025, reaching 2.3%, driven by a decrease in energy price inflation. According to preliminary data, Spain’s annual inflation rate is expected to fall to 1.9% by 2026. In this context, nominal wage growth is pro- jected to rise above inflation. Tourism continues to be one of the key economic pillars of the Spanish economy and tourist spending rose by 7.2% during the first quarter of 2025, accord- ing to the Spanish National Statistics Institute (INE).
that opt for the high-yield markets. 1.4 Alternative Credit Providers
Alternative credit providers continue to increase their lending activities in Spain with a special focus on SMEs, real estate projects and capital call financings,
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