Spain will exit from recession with difficulty

 

Spain will be one of few economies to shrink in 2010 and its exit from the crisis will be difficult due to an unsustainable public deficit, Spanish bank BBVA's chairman said on Friday.

"Spain's exit from the crisis is difficult because of its unsustainable public deficit, the explosive growth in public debt and the deterioration of a large part of the financial system" Francisco Gonzalez told shareholders at BBVA's annual general meeting.

"We cannot lose credibility with our funding markets and the problems must be urgently addressed" Gonzalez said.

He also called for a "in depth" restructuring of Spain's financial sector.