The Bank of Spain and its Supervision Memorandum define bad financial management. The balance sheets and the accounts of Spanish firms´results continued reflecting the crisis, between those that marked the strength of write-offs and the paralysis of debt issuances.
In the memorandum the Bank of Spain explained the significance of issuing preferential and subordinate debt, two instruments that count as proprietary resources and registered setbacks of around 75% in 2010.
They ended at 6.465 million euros. When the last government ruled, this number had reached 26,314 million.
This significant drop is owed in part to firms who have substituted existing issuances for new ones, taking advantage of new rates, which provided salutary benefits that ended up building their internal resources.
The supervisor clarified that this small figure (keep in mind that in 2008 the value only rose 3,747 million) does not incluce the preferential debt that the Frob acquired for the savings banks and equals some 8,397 million. That is to say, nearly 50% more than the entire industry.
