Spotlight: recent restructuring and insolvency developments in Spain

August 13, 2021

By: Carlos Ara Triadú, Fedra Valencia García, Iñigo de Luisa Maíz and Íñigo Rubio Lasarte

Overview of restructuring and insolvency activity

i Liquidity and state of the financial markets

The covid-19 pandemic has been the main factor of influence not only on the financial markets, but also in all economic sectors during 2020 and 2021. The Spanish government followed other European government schemes by putting together a set of measures to provide financial support to companies and individuals. The main measures were (1) government guarantees for banks lending to small and medium-sized companies (SMEs) and self-employed people whose activity had been affected by covid-19 for a total of €126 billion; (2) mortgage moratoria for individuals for a total of €20 billion; (3) mortgage moratoria for the tourism sector that are still available and that it is hoped will help the sector's recovery in the summer of 2021; and (4) the incorporation of a fund for acquiring equity interest and providing finance to strategic companies with a maximum amount of €10 billion, of which around €1 billion has already been committed as of May 2021.

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