Spain's Weak Corporate Sector and the IMF
Recommendations to "be prepared for future shocks" have been made by the IMF to Spain regarding the continuing weakness of the Spanish business sector
The report, titled The Italian and Spanish corporate sectors in the aftermath of the crisis, concludes that "the crisis has had a severe impact on the corporate sector in Italy and Spain"
The document goes on to explain that evidence of weakening can be witnessed across a range of measures of profitability and liquidity.
The negative effects have affected businesses across the board however small businesses were effected the most along with the construction sector.
They stress the need for Spain to implement a broad strategy to fix and revive the corporate sector.
This goal of this strategy should be to reallocate resources towards healthier companies and sectors, re-structure the financial commitments of viable enterprises to give them a new lease of life and most importantly, give increased access to alternative sources of finance to reduce dependence on the banking sector.