Spain faces divergent debt trends in public and private sectors

Spain is experiencing divergent debt trends across different sectors. In the municipal sector, the town of Daimiel in Ciudad Real reported a significant reduction in debt, reaching a level of 48.47% and reducing annual debt payments to under one million euros for the first time in 15 years.

Conversely, the Spanish Treasury has faced rising costs, with interest rates increasing across all tranches during a recent auction of over 4,000 million euros in bonds and obligations.

On an individual level, the ‘Second Chance Law’ continues to provide relief for insolvent citizens. In Barcelona, a woman successfully utilized the law to cancel a debt of 67,662.90 euros through the Exoneration of Unsatisfied Liabilities (EPI) process, following a cycle of over-indebtedness triggered by post-pandemic economic difficulties.