Nadia Calviño, the Vice President of Economic Affairs and Digital Transformation, addressed a congressional audience this week, outlining the government’s ongoing approach to financial oversight. She highlighted a policy posture of careful scrutiny over loan programs that rely on public guarantees to support sectors hit hardest by the pandemic or exposed to volatility in energy and raw material prices. The emphasis was on monitoring risk and ensuring that public money remains a lever for stability rather than a source of future vulnerability.
Her remarks were delivered before the Congressional Economic Affairs and Digital Transformation Commission, accompanied by the presentation of the annual report from the Macro Prudential Authority Financial Stability Council (Amcesfi) for 2021. The report frames the broader macroprudential lens through which Spain evaluates financial system resilience and the interplay between public guarantees and market dynamics.
Calviño stated that authorities will maintain close observation of select loan portfolios in the months ahead. The focus remains on firms in sectors most impacted by the pandemic, those benefiting from public guarantees, and entities sensitive to shifts in energy and commodity prices. The goal is to preempt stress points and reinforce the resilience of credit channels that support job creation and investment, while avoiding unnecessary risk accumulation.
She also underscored the positive impact of the government’s price crisis response measures. A new guarantee facility has been established, providing up to 10,000 million euros to ease financial pressure on businesses as they navigate price fluctuations and supply chain challenges. This line aims to preserve liquidity, sustain production, and sustain competitive positions in a challenging macro environment.
Prioritize the economic consequences of war
On a parallel track, the government’s top economic official explained that Amcesfi has been tasked with prioritizing monitoring of financial stability implications arising from geopolitical tensions, including the ongoing situation linked to the Russian invasion of Ukraine. The aim is to detect emerging vulnerabilities early and guide policy responses that protect households and productive sectors from rapid shocks.
Spain has already committed 53% of European funds planned for 2022
In 2021, a new capability emerged to advise on the advisability of extending the maturity profile of covered bond issues under conditions of financial market volatility. This strategic flexibility helps stabilize funding conditions for banks, supporting lending continuity as markets adjust to evolving risk scenarios.
Calviño noted that Amcesfi issued its first formal advisory opinion endorsing the Bank of Spain’s perspective on Caixabank. The opinion supports progressively strengthening capital buffers following the consolidation with Bankia, aligning with prudential objectives that promote long-term financial resilience. This alignment is presented as part of a broader effort to maintain stable credit supply and confidence in the Spanish financial system, particularly important for international investors observing European markets from Canada and the United States. [AMCESFI report, 2021 attribution]