Date
11/21/2024 7:05:38 AM
(MENAFN) Spain’s financial sector has suffered a significant blow from the devastating floods that hit the country, particularly in the Valencia province. The bank of Spain estimates the total damage to the financial sector at €20.5 billion (USD21.6 billion), with approximately 561,210 people directly impacted. The floods, which occurred on October 29, caused severe disruptions, especially in the eastern and southern regions of Spain.
Bank of Spain Governor Jose Luis Escriva highlighted that the damage to the financial sector represents 1.8 percent of the total loan volume of Spanish banks, but reassured that the sector remains stable. Of the USD21.6 billion in damages, USD14.2 billion is attributed to damage to homes, while USD7.4 billion concerns businesses. Despite ongoing efforts to recover damaged banknotes, the financial system is slowly returning to normal, with 9 percent of ATMs in the flood zones still out of service and 37 out of 298 damaged banks yet to reopen.
The economic impact of the floods extends beyond the financial sector, with the Bank of Spain predicting a 0.2 percentage point decline in Spain’s GDP for the fourth quarter. The Valencian Community, one of the hardest-hit areas, has requested USD33.1 billion in aid for regional damages. Meanwhile, the Spanish central government has provided USD14.7 billion in aid through two packages to support recovery efforts.
The human toll of the disaster has been severe, with the death count reaching 226, and 13 people still missing. The floods have caused widespread destruction, and recovery efforts are ongoing as the country grapples with the extensive damage.
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Publish date : 2024-11-21 05:38:00
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