Fundación Ideas para el progreso

In an exercise of maximum transparency, Spain was the only country which submitted all of its banks and public savings and loans entities to most severe resistance tests. The results of the tests reveal that the Spanish financial system, in the worst hypothetical, would end up with 8.3% solvency versus the 6% currently asked for and the 4% demanded legally.

Such positive results have served to silence the market rumours which situated the country on the edge of the financial cliff. This effort of transparency and severity has been applauded by the financial markets where the risk of Spanish debt has fallen by 10%. Currently, the event has not been especially significant in the stock market, although the Ibex 35 has regained some of its past value, staying stable at around 10,500 points.

Germany, the country which most questioned the solvency of the Spanish banking system, has received many criticisms on behalf of markets for hiding the sovereign risk of a good deal of its banks and finally, the country had to recognize its strong exposure to Greek debt. German bonds suffered their biggest loss in recent weeks.