Spain is the 5th largest economy in Europe that went through economic recession in 2009-2013 with already high rate of unemployment reaching the peak of 26.1% in 2013. The Country started to recover in 2014 by posting 1.4% economic growth and in 2015 GDP growth reached already 3.2%. Positive development is expected to continue with GDP estimated to expand by 2.8% in 2016 with unemployment falling further, but remaining still fairly high at 19.8%. Despite the positive outlook, if the country would fall back to recession and unemployment starts to increase, it will have an adverse effect on Bondora Group´s business, performance of the loans, Bondora Group’s and the investor's financial condition, cash flow and operational results.
Measure to mitigate risk
Credit rating agency Moody´s has given Spain an investment grade rating Baa2, with stable outlook. Regardless, Bondora Group has already demonstrated that it can operate successfully also during an economic downturn.