Pablo Hernández de Cos: The impact of the pandemic on the Spanish business sector's financial situation

Speech by Mr Pablo Hernández de Cos, Governor of the Bank of Spain and Chairman of the Basel Committee on Banking Supervision, at the 1st International Management Congress. APD. Purposeful Business, 24 November 2020.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Good afternoon, ladies and gentlemen. First, let me begin by thanking the organisers for kindly inviting me to take part in this Congress.

My presentation today will focus on the impact of the COVID-19 crisis on the Spanish business sector's financial situation and on the role that economic policy is currently playing and should continue to play to mitigate that impact.

Business activity has been particularly affected by the crisis. Many of the economic policy measures adopted have been designed precisely to minimise that effect. These measures are and will continue to be crucial, to prevent the temporary shock caused by the pandemic from resulting in the closure of many businesses and, ultimately, in persistent damage to our productive capacity.

However, despite the policy measures taken, many businesses have seen their financial situation deteriorate since the start of the crisis, and how we address this deterioration will have important repercussions for the macroeconomic outlook in the short and medium term.