Two of the post to be published today, in this and other blog of our group have revealed the current situation regarding financial Sisema SMEs in our country. On the one hand, my partner Mark, in his Blog post on SAGE, commenting on the gloomy outlook in the credit and, secondly, Remo, on this blog, talking about the excessive borrowing by SMEs in our country.
Back in the day we discussed, that the absolute numbers of over-indebtedness of Spanish companies could be misleading because of the enormous weight of the construction sector company had in those numbers. However, what I want to show the contrast between the figures of indebtedness of SMEs in our country compared to other EU countries, in contrast to the very low rate of private investment to pick up our companies, also in comparison with other surrounding countries.
Regarding the difficulties in obtaining financing, if we have not gotten used to them, we should be doing. The main problem affecting the Spanish economy is that the total debts of SMEs and individuals in excess of 2 billion euros, this is more than double the GDP. This has led to the banks of our country has a brutal leverage, taking into account the difference between fund raising and lending.
Therefore, one of the main objectives of financial institutions is to reduce that leverage, so it should stop and tighten the criteria for the granting of more loans. So, forget about the easy availability of loans and credit cards 4 or 5 years ago, that time will take a long time to return.