President of Abanca: “They told us that a black and terrible autumn has come, we are just in spring”

“They told us that a black, terrible autumn was coming. Autumn passed, and they told us that a much harsher winter was coming, and the truth is, we are in a full spring with different results than expected,” he later added, pointing out that, yes, “the future is not immune to uncertainties, the destiny of new times”. Escotet, He reminded that since last November 11, different growth forecasts for the Spanish economy have risen: from 1% to the current 1.9%. “And Bank of Spain It already points to an increase of more than 2%”he accepted.

There are a few keys he has revealed so that the crisis does not finally settle in the economy. The first thing he mentioned was energy. “With planning and a bit of haste, it was possible to avoid the energy crisis by ensuring the energy supply,” he explained. He also noted that employment “showed an extraordinary strength”. Of course, this power also has a negative side: inflation. ““As long as we keep our purchasing power high, prices will remain high,” he said. was predicted. Another key that he underlines for the economy to go “better than expected” is foreign sales. “Exports increase GDP. “They have done wonderfully and there is much more in the Galician case,” he said.

Other contributing factors, according to the president of Abanca, are accumulated savings and lower indebtedness of families mitigating the impact of the crisis inflation and an increase in exchange rates. “It has nothing to do with the 2011 crisis,” he said. Of course, there was a trend change in the first quarter of this year and savings fell. He said nearly half was due to mortgage depreciation, which isn’t bad because the level of debt that families have has decreased.

After X-raying why the economic situation wasn’t so bad, he moved into the realm of challenges. First and foremost, hidden inflation that “doesn’t finish correcting itself”. He warned that inflationary persistence, specifically underlying inflation, will be longer than the European Central Bank (ECB) admits. And this state of high inflation was achieved, according to Escotet, because its effect was “underestimated” by the ECB. He criticized the delay in monetary policy implementation (a rise in interest rates) that should be accompanied by a moderate fiscal policy (debt adjustment and a return to European budget rules). And with regard to the budget rules, he recommended that the public debt not exceed 60% of GDP – Spain’s currently reaching 115% – and fix the deficit above 3% – now over 4% – .

Finally, he stressed the strength of the Spanish financial system, as it has a much stronger position than the previous crisis, better solvency, better liquidity and better credit quality. He also had words for the old Galician boxes: “They succeeded when they kept the business in Galicia. When they went out to conquer new markets, ignorant or unmanned, they made mistakes that, in the case of Novacaixagalicia, meant no more and no less than 9,000 million Euros to the State”.

Abanca Energy was born to support the energy transformation

According to reports, Abanca established the Abanca Energy unit to encourage the development of energy projects by companies and families. He also explains that the bank will meet the needs of customers who want to develop projects related to energy production, distribution, marketing and consumption activities, both in Spain and abroad, through Abanca Energy. “With the establishment of Abanca Energy, we are advancing in our responsible, sustainable, transparent and innovative banking model, creating value and contributing to social development and environmental protection in the region,” said Francisco Botas, CEO of the organization.