Title page
Contents
ACKNOWLEDGEMENTS 4
EXECUTIVE SUMMARY 7
1. INTRODUCTION 9
2. MACROECONOMIC DEVELOPMENTS 10
3. PUBLIC FINANCE DEVELOPMENTS 12
3.1. FISCAL PERFORMANCE 12
3.2. FISCAL OUTLOOK 13
4. FINANCIAL SECTOR DEVELOPMENTS 14
4.1. RECENT TRENDS 14
4.2. REFORMS AND POLICY 17
5. SOVEREIGN FINANCING AND CAPACITY TO REPAY 20
ANNEX A. MAIN MACROECONOMIC AND FINANCIAL INDICATORS 23
ANNEX B. DEBT SUSTAINABILITY ANALYSIS 24
Graphs
Graph 2.1. Composition of GDP growth 10
Graph 4.1. IBEX35 and selected Spanish banks stocks 14
Graph 4.2. Bank deposits 15
Graph 4.3. Bank loans to the private sector 15
Graph 4.4. Ratio of non-performing loans 16
Graph 4.5. Bank sector profitability (consolidated basis) 17
Graph 5.1. Sovereign spreads to the 10-year German bund 22
Annex Tables
Table A.1. Main macroeconomic and financial indicators 23
Table B.1. Debt sustainability analysis - Spain 26
Table B.2. Heat map of fiscal sustainability risks - Spain 26