Banking: BBVA remains bullish on regional prospects
Another way that BBVA hopes to stay ahead of its competitors is through its relationship with multilateral agencies. Outside Brazil, it is the bank that uses the most MLA credit lines in the region.
On March 27, BBVA and the Inter-American Investment Corporation signed an agreement. Now the IIC will funnel funding for small and medium-sized enterprises through BBVA as well as offering a range of medium-term and long-term financial products: dollar and local-currency denominated loans, credit lines and guarantees.
"Our business benefits from these lines as we can pass on this liquidity to our clients," says Rodero. "It puts us in a good position compared with our competitors."
But while Latin America is BBVA’s sweet spot, Spain is struggling. Rodero expects the Spanish economy to shrink 2% to 3% this year. He says: "Spain is a problem of course – particularly the real estate sector." Spanish construction company Martinsa Fadesa filed for administration in mid-2008 and property prices are expected to fall by a third in the next three years.
"But," adds Rodero, "will these problems in Spain have any knock-on effect on the Latin business? Not at all.