The Bank Loan Survey published by the Bank of Spain predicts that the country will see the largest increase in loan applications from companies since 2003. Companies are expected to seek the funds in order to survive setbacks during the coronavirus crisis and to make up for lower household demand. Consumer demand has fallen to levels not seen since 2008 as the country’s economic prospects worsen, following a long, painful recovery from the Great Financial Crisis. The survey, which was carried out over the first quarter of the year, found a generalized drop in demand for credit between January and March compared to the same period in 2019.
