debt

The Winter Olympics leave Italy with a debt of 7.8 million dollars. Not to organize them, to win them

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Italy can be satisfied with the Winter Olympic Games, held in its own home. It has gone well. Very good, in fact. Thirty medals in total: 10 gold, six silver and 14 bronze. If we talk about metals in general only there are three nations with a better balance, the powerful Norway (41) and the United States (33). The most curious thing is that this balance is so damn good that now Italy will have to assume a debt of almost eight million of dollars. Success also pays. What has happened? That Italy will have to face a debt of 7.8 million dollars for the Winter Olympics that it just hosted. So far nothing extraordinary if we take into account the large investment carried out by the country to host the Olympics and that a large part of these funds were financed by the Executive itself. The curious thing is that those almost eight million have nothing to do with its status as host or the infrastructure necessary for the tests. The debt has another reason: the sporting successes achieved by Italy. Country Golds Silver Bronze Total Norway 18 12 11 41 USA 12 12 9 33 Italy 10 6 14 30 Germany 8 10 8 26 Japan 5 7 12 24 Debts to earn? Yes. The news (and the calculations that support it) has revealed them Forbeswhich on Sunday echoed the peculiar scenario that Italy faces. In his day the Italian National Olympic Committee He decided to encourage his athletes by promising them huge bonuses if they made it onto the podium. To be more precise, he offered 213,000 dollars in exchange for gold, 106,000 for silver and 71,000 for bronze. What has happened? That incentive seems to have worked and has now generated a million-dollar commitment. Its status as host nation opened the doors to automatic qualification for Italy, but its sports teams have demonstrated a more than notable performance: they achieved 30 medals (10 gold, six silver and 14 bronze), ten more than those achieved in 1994which had been his best winter Olympics until now. In fact, in the global ranking it is only surpassed by Norway, with 41 medals, and the USA, with 33. It is also one of the best positioned in gold medals. It occupies third place in the ranking, shared with the Netherlands. Does it only happen to Italy? No. Although it is true that your case is peculiar. For your report Forbes He contacted 37 delegations who confirm having offered incentives to those athletes who reached the podium. Among those groups, Italy was one of the most generous. Only Singapore, Hong Kong, Poland and Kazakhstan surpassed it, which motivated their sports teams with bigger prizes. For reference, Singapore ‘tempted’ its athletes with $787,000 in exchange for gold in individual sports. Hong Kong paid it at $768,000. What happened in Italy? That the claim worked as well for none of those delegations as it did for Italy. According to the calculations of Forbesthe host country is the one that will have to pay the most now: 7.8 million dollars, well above the second on the list, the United States, with just over three million. Third on the list is Switzerland (1.5 million) and fourth is Poland, whose incentives total 1.24 million. In general, the incentive system varies greatly from one country to another. Not only for its rewards. There may also be differences in how these bonuses are financed (with public funds or with sponsors), in the maximum number of bonuses or if the prizes extend beyond the podium, also rewarding athletes who return home with Olympic diplomas. Italy has also decided to offer bonuses to its para-athletes, so the amount it owes to its most successful athletes could increase not much. In this case, the bonus amounts to $118,000 for those who win the gold, 65,000 for those who win the silver and 41,000 for the bronze. Is it the only relevant figure? At all. The bonus debt is curious, but it is by no means the only relevant figure associated with the Winter Olympic Games that Italy has just organized, with distributed headquarters through Milan, Cortina d´Ampezzo, Verona, Valtellina and Val di Fiemme. Another key data is the investment mobilized by the competition. S&P estimates that the total cost of the Winter Games comfortably exceeded 5,000 million euros. A good part of this spending (about 63%) was public and was dedicated mainly to investments in infrastructure. The other fundamental data is the economic return for the country: some estimates speak of the generation of some 5.3 billion eurosa good part of them thanks to tourism boost. Images | Eric Salard (Flickr) and Simone Ferraro/CONI Via | Forbes In Xataka | The Winter Olympics are facing the most unexpected technological doping: penis punctures

Google has borrowed money to repay in 2126. AI is already financed with debt for a century ahead

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Alphabet has just closed the largest debt transaction in its history: $20 billion in bonds. And it is preparing something even rarer: an issue in pounds that includes a 100 year bond. Expires in 2126. Why is it important. No major technology company has issued a centenary bond since IBM in 1996. That Google is doing it now says a lot about the scale of investment AI requires. And that this race is financed with wild debt. The background: A bond is borrowed money. The company pays periodic interest and returns the principal at maturity. The routine is terms of 5, 10 or 30 years. The extraordinary thing is to ask for money from a century into the future. Investors lined up: demand exceeded 100 billion, five times what Google was asking for. Alphabet planned to raise 15 billion, but raised the offer to 20 billion due to the flood. Between the lines. A century-year bond is a statement of intent: “we are building infrastructure that will last generations.” Google is thus conveying that AI is not a three-year fad or something that we will forget after the puncture, but something that will transform the economy in the long term like railways or electricity did. Yes, but. Michael Burry, the investor who anticipated the 2008 crisis, has issued a warning that has gone viral: the last technology company that issued a centenary bond was Motorola in 1997. And according to him, that was “the last year in which Motorola mattered.” In 1997 it was a top 25 company in the United States, but a year later, Nokia overtook it and then the iPhone, Android, Chinese manufacturers arrived… and now, in the hands of Lenovoit barely fits into the top 10 mobile manufacturers. Burry asks: is this trust or the gesture made right at the top, before everything changes? The figures. Alphabet’s spending on infrastructure this year may reach, according to figures published by the companyat 185,000 million dollars. More than the previous three years combined. They are data centers, chips, computing capacity for AI… The five other large companies that have increased their capex (Amazon, Google, Meta, Microsoft and Oracle; Apple has reduced it) issued 121,000 million in bonds last year. Four times more than the annual average for 2020-2024. Main winner? Google, without a doubt. Issuing very long-term debt locks in favorable interest rates for decades. If they go up, Google already has its financing. If they go down, you can buy back the debt sooner. Plus, the interest is deductible, so it’s cheaper than using your own cash. And it does not dilute shareholders. Win-win-win. What is happening. The era in which technology companies grew solely by turning to their profits is over. The enormous expense required by the infrastructure for AI makes them use financial instruments that until now they had barely needed. They are no longer software startups. They are the largest infrastructure builders of the 21st century. And they need a lot of capital. The big question. Is giving bonuses for a century vision or overconfidence? Probably both: What is certain is that technology companies now compete in the debt markets like banks and large industrial companies. And that defines what our industry has become. In Xataka | The intellectual luxury of our era is sustaining our attention, AI is making it worse Featured image | Mitchell Luo

The US has taken over Venezuela’s oil. The problem is that the package includes a gigantic debt with China

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The map of world power has been redrawn in just one week. The capture of Nicolás Maduro by US forces is not just a regime change; is the birth of the “Donroe Doctrine”, a movement with which Washington seeks to consolidate an energy empire “from Alaska to Patagonia” to control 40% of world production. However, after the military euphoria in the White House, a dilemma of trillion-dollar proportions looms: the oil has been taken, but it is mortgaged, and China demands its bills. The collector at the door. Control of the largest reserves on the planet has put the US face to face with the great creditor of the Caribbean. According to the South China Morning Post (SCMP)the current exposure in a state of “limbo” is estimated at $10 billion, although other estimates by think tanks collected by the same medium raise the historical debt to more than 60,000 million, much of it structured under the “oil for loans” model. But how was this sum arrived at? China needed energy for its industrial rise and Venezuela needed cash. Under this premise, Beijing financed railways, power plants and more than 600 bilateral agreements. Now, the great fear of the Asian giant is that the new government in Caracas —protected by the Trump administration— invoke the doctrine of “hateful debt”. As Cui Shoujun explains in SCMPthis legal remedy would allow the loans to be repudiated, alleging that China’s money did not benefit the people, but rather financed the survival of the regime. It would be the perfect “legal pretext” to clean up the balance sheets before the American oil companies take the reins. The agony of the Chinese state companies and the shield of the “Teapots”. The anxiety in Beijing is not just political, it is corporate. As revealed by Bloomberggiants such as China National Petroleum Corporation (CNPC) are carrying out damage assessments amid fears that decades of investments will evaporate. Nevertheless, according to information from Reutersthese companies still operate in the country through joint ventures such as Sinovensa, and control rights to reserves amounting to billions of barrels. However, China has an “ace up its sleeve.” A couple of months ago, they were absorbing 90% of measurable crude oil storage. Besides, as detailed by the Financial Timesmuch of the flow of Venezuelan crude oil arrived in China through the “teapots” (independent refineries), which bought the oil at steep discounts to avoid previous sanctions. By taking control of exports, the United States not only recovers crude oil, but also eliminates a key competitive advantage for the Chinese industry, raising its energy costs at a stroke. The technical paradox. Many wonder why Trump would risk so much for oil that seems “bad.” The answer is a necessary technical symbiosisAmerican and Spanish refineries (like Repsol’s) act as “stomachs” designed for heavy crude oil from Venezuela, which needs to be mixed with light oil from the fracking to produce diesel efficiently. However, the prize comes with a bill astronomical repair. The infrastructure is literally in ruins: loading an oil tanker today takes five days compared to the one day that was enough seven years ago, and the crude oil arrives “dirty” (with excess water and salt) due to lack of maintenance. Reconstructing the sector will require 10 billion dollars annually for a decade, to which is added the drama of natural gas: Venezuela today burns in “smoke” the equivalent of the consumption of all of Colombia due to pure technical negligence. The battle of the offices. Trump has taken control of the energy crown jewel, but has found himself with an astronomical repair bill and a Chinese creditor who won’t go away quietly. As the Financial Times warnsif the US decides to also suffocate supplies from Iran after this blow in Venezuela, China could see 20% of its cheap crude oil imports compromised, which would force Beijing into an unpredictable reaction. The real battle did not end with the capture of Maduro; It is just beginning in the offices of Washington and Beijing. Venezuela is the jackpot, but it is a prize that comes with fine print that could go bankrupt the financial balances of half the world. The oil era is not over, but the map of who controls it and who pays for it has been rewritten with blood and debt. Image | Luisovalles Xataka | The war in Ukraine has just met that of Venezuela: that means that its two invaders are facing each other

They no longer trust their own debt

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Deutsche Bank and Morgan Stanley are looking for ways to protect themselves from the debt they have extended to build AI data centers, according to Ed Zitron’s latest report in which he makes a notable criticism of the boom of AI and the stock market in which debt and complacent analysis are inflating an unsustainable bubble, according to their analysis. Both banks are contemplating “synthetic risk transfers.” It is a mechanism that allows the credit exposure of loans to be sold to other investors while keeping the loans on their books. Deutsche Bank even is considering betting short against actions related to AI. Why is it important. These movements clearly show a certain distrust in the economic viability of the infrastructure they are financing. Morgan Stanley, Deutsche Bank, Goldman Sachs, JP Morgan and MUFG have participated in the world’s largest data center financing transactions, including various loans to CoreWeave and the stargate projectsbut now they are looking to reduce their exposure to those same assets. The figures. At least $178.5 billion in data center financing was closed in the United States alone in 2025, almost triple the amount in 2024. CoreWeave, one of the largest operators, carries $25 billion in debt on estimated revenues of $5.35 billion, losing hundreds of millions each quarter. The context. AI data centers are powered by a circular financing model: They sign contracts with their clients before having the physical infrastructure. They use these contracts as collateral to obtain bank debt. They buy NVIDIA GPUs and build facilities that take between one and three years to be operational. Only then do they start generating monthly income. If construction is delayed or the client cannot pay, the loan is up in the air. Between the lines. The banks that have fueled the bubble are now covering their backs. Yes, but. Banks argue that these hedges are normal risk management practices. The problem is that they are hedging themselves against loans that they themselves structured and approved, many of them to clients whose ability to pay is, at the very least, uncertain. CoreWeave has offered OpenAI net 360 payment terms (one year from invoice to settle), depending on your loan agreement. If OpenAI, which needs to raise $100 billion to continue operating, decides not to pay, CoreWeave automatically defaults on its credit obligations. And CoreWeave is probably the best-funded operator in the IT industry. neoclouds. The money trail. NVIDIA announced in October that would guarantee $860 million in lease obligations from a partner in exchange for warrantswith 470 million deposited in a guarantee account. CoreWeave’s third-quarter balance sheet includes a “non-current restricted cash” item of $477.5 million. NVIDIA also signed a 6.3 billion contract with CoreWeave to buy the capacity that CoreWeave fails to sell until 2032. Go deeper. The banks that are hedging their bets are the same ones that have funded most of the global AI infrastructure. They are not selling the risk of any loan, but the risk of data centers that may never turn on, or that if they do, will serve customers who burn billions without generating profits. When the financiers of boom show signs of having stopped believing in boomit is worth paying attention. In Xataka | We have reached a point where not even the CEOs of Google or Microsoft deny that we have an AI bubble Featured image | İsmail Enes Ayhan

If you thought the AI ​​bubble was worrying, it’s because we hadn’t entered its next phase: debt

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Big technology companies have issued $75 billion in bonds and loans between September and October 2025: Meta leads with 30,000 million. Followed by Oracle (18,000 million in bonds plus a loan of 38,000 million). And Broadcom (27 billion). The figure is equivalent to what these three companies used to borrow in an entire year. Why is it important. The shift from liquidity to debt marks a turning point in the AI ​​race. For years, these companies financed their infrastructure with cash flows, but now they are resorting to debt: Debt not linked to bonds has gone from 15% to 30% of its capital. The money trail. Oracle has closed the largest syndicated loan (a joint loan by several banks to a single client) in its history: 38 billion for data centers. Meta, for its part, is allocating its 30,000 million to campuses in Virginia and Oregon. And Broadcom uses them to strengthen its semiconductor division and its network equipment. The threat. Paying the interest on all this debt now consumes 15% of these companies’ operating profits, compared to 10% a year ago. And the cost of borrowing has risen: corporate bonds are near their most expensive levels since 2022. If the energy bill rises by 20% – a more than likely scenario given the stress on electrical networks – or if AI does not generate the expected revenue, these companies could see their credit rating reduced and trigger a chain crisis. Yes, but. Large investors continue to buy these bonds, attracted by returns of 6%. Money flows because official interest rates are at 3.75%so lending to these technology companies seems like a good deal. The problem is that any sudden change in rates can make these bonds lose value. And fast. At stake. Debt finances the AI ​​revolution, but also makes it more fragile and technology companies continue to increase their investment. If inflation returns or profits fail, the same debt that accelerates innovation could become a liability. Investors, meanwhile, continue to win; but they assume the risk of the storm. In Xataka | Apple is resisting the push for AI PCs because AI PCs have caused complete indifference Featured image | Towfiqu barbhuiya

The danger of using AI chatbots for everything is real: MIT has discovered the “cognitive debt”

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A MIT study He has shown that chatgpt and similar tools generate what they call “cognitive debt”: students who resort to them for total use end up writing better, but thinking worse. Why is it important. The study contradicts the belief that AI is like a calculator: a simple support that frees us for more complex reasoning. Actually, these tools can atrophy the brain connections that build critical thinking. The facts. 54 university students have spent months writing essays, divided into three groups: Grupo LLM, which used Chatgpt. Search motor group, which used Google. And group Solo-Cerebro, without external tools. The researchers measured their neuronal activity with electroencephalograms and the results have been overwhelming: those who used a neuronal connectivity systematically lower in all frequency bands. Compared to the group that only used its brain, there was a lower activation in key networks that connect parietal, temporal and frontal regions, fundamental for attention, memory and semantic processing. In Xataka 81% of interviewers suspected the traps with AI in interviews: 31% have confirmed it without a doubt and they have put a brake The contrast. The essays generated with AI received better notes, both from teachers and evaluating algorithms. But their authors remembered worse what they had written minutes before and felt a minor authorship about their texts. When they forced the usual users to write without help, their brain patterns showed that dependence on external support. They had lost ability to reactivate the necessary neural networks to write independently. How to walk without support after years doing it with crutches. Yes, but. The students who learned to write without ia and then used it for the first time maintained their engagement neuronal They even showed better memory and reactivation of broad brain areas. The key difference: You need to know how to think before you can think with machines. In perspective. This pattern replicates what we see in other professions: The subway driver who feels alienated because the train drives alone. Translators turned into machine editors. 3D creatives that only retouch what the AI ​​generates. {“Videid”: “X9R6K72”, “Autoplay”: False, “Title”: “Chatgpt Pulse”, “Tag”: “Technology”, “Duration”: “67”} The threat. The study also analyzed university students who already had developed writing skills. The effects could be more severe in adolescents who are still building these cognitive abilities. As a Dartmouth teacher said: we run the risk of creating “an educated generation with AI shortcuts” that lacks independent thinking skills. And now what. The sequence matters more than technology. First, you learn to think. Then, you learn to think with machines. The brain needs to build those Neuronal highways before being able to delegate selectively in AI. The study concludes that educational interventions should “combine the assistance of AI tools with learning phases without tools” to optimize both immediate skill and long -term neuronal development. Outstanding image | Xataka In Xataka |What happens if the software doesn’t matter when you are the largest company in the software world (Function () {Window._js_modules = Window._js_modules || {}; var headelement = document.getelegsbytagname (‘head’) (0); if (_js_modules.instagram) {var instagramscript = Document.Createlement (‘script’); }}) (); – The news The danger of using AI chatbots for everything is real: MIT has discovered the “cognitive debt” It was originally posted in Xataka by Javier Lacort .

For this company it has meant charging 15,000 euros of a debt

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If you are one of those people who see Unreported Post Office In your entrance tray without immutation, perhaps you should take into account that this habit can reach cost you a disgust economic depending on your professional responsibilities. The Provincial Court of Valencia has sentenced a bankruptcy administrator to pay compensation of 15,000 euros for not responding to emails that for a year sent him a creditive company. A notified debt. As you can read in the sentence Dictated by the Provincial Court of Valencia, a construction company entered into a process of suspension of payments in 2020, so a process of creditors protected by a bankruptcy administrator who is in charge of quantify debts of said company and establish the payment of debts in a timely manner. One of the creditor companies notified the Existence of a debt pending sending two bills due to 2019 and 2020 to the bankruptcy administrator for an amount of 14,202.88 euros. However, and after several emails asking for information about the state of the collection, the bankruptcy administrator gave no response. Demand to the administrator. After several unsuccessful attempts to communicate with the administrator, sending invoices with the sufficient legal deadline. The administrator finally closed the bankruptcy process leaving the crediting company out of the credit plan. Before which, he filed a lawsuit against the administrator. In his allegations, the bankruptcy administrator declared that he had not submitted it on time and that he should have claimed it with more insistence when he saw that his debt did not appear in the reports of payments to creditors. Justice makes it clear: look at your email tray. The magistrates of the Provincial Court of Valencia leave no doubt, and consider that the company notified the debt both by mail and formally. The sentence ensures that it was the responsibility of the bankruptcy administrator to respond to the demands that reach them through a valid communication channel How is email. Therefore, it forces the bankruptcy administrator to pay the debt, although the process has already been closed. José Martínez Carrera, General Director of the Managing Office, who had represented the credit company, declared declared to Digital economy“Finally, this judgment includes the day -to -day problems of creditors, where bankruptcy administrators do not respond to any consultation for the payment of credits against the mass.” The lawyer regrets that it is common for administrators to “give the quiet response”, forgetting that in this process they are legal representatives of the company they manage. From the pandemia nobody takes the phone. The case of neglect in the communications of this bankruptcy administrator is nothing more than one Of the many examples of the drift of some public bodies and private companies that have eliminated or limited significantly the communication options (by telephone or by email), as He denounced Antena 3 news. They maintain the service, but are limited to not attending the calls. “Nothing, they hang up. They don’t put music you, or anything. They don’t take it directly,” a user lamented. Public services such as SEPE or information for immigration or social security care They stopped attending the phone after the pandemic in the absence of dedicated personnel. Now, that neglect of communications also seems to be extended to email. Valencia’s justice is not willing to allow “ghosting” to also extend to email. In Xataka | The best advice to reduce email stress, according to a linguist expert: respond to emails Image | Unspash (Stephen Phillips – Hostreviews.co.uk)

The collapse of shelter values ​​such as the US dollar and debt

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The American treasure bonds, considered for decades the safest asset in the world, are suffering The biggest mass sale since 2001when Puntocomwith yields that exceed 4.5% in the ten -year bonus and touch 5% in thirty years. This shake is not a simple technical adjustment. This directly questions the dollar and the US debt as a safe refuge in moments of global economic uncertainty, precisely when Trump’s commercial war with China and other countries reaches historical levels with the tariffs of Up to 104%. Why is it important. The collapse of the American bond market also has implications for Europe and Spain. If investors lose confidence in the dollar and American bonds, two contradictory scenarios are possible: European risk premiums could shoot themselves by infection, making financing for governments and Spanish companies. Or paradoxically, Europe could benefit if investors look for alternatives to the dollar, lowering our debt. The current situation. What began as a technical problem in the bond market has become a crisis of trust. The coverage funds carried out by arbitration operations with American bonds (known as “Basis Trade“) are being forced to sell in mass, shooting the yields and causing a vicious circle. The ten -year bonus from the United States has gone from a 3.87% yield to early April to More than 4.5% In just a week. The bonus at thirty years has touched 5%levels not seen in more than a decade. The type curve has been invested extremely, with a difference of 30 basic points between two and ten years bonds in just a few hours. Between the lines. This phenomenon is the structural change reflex. After decades as an indisputable world reserve currency, The dollar and the American bonds are being questioned as a result of Trump’s aggressive tariff policy. China, Japan and the United Kingdom, main foreign American debt holders And precisely countries especially affected by tariffs, they can be using their bond reserves as an economic weapon, selling them in retaliation. At stake. The stability of the global financial system now depends on how central banks respond. The Federal Reserve could be forced to make emergency cuts in interest rates or implement programs for buying bonds similar to Those used during the 2008 crisis. If these measures fail, the consequences would be serious: increasing credit for companies and families, destabilization of stock markets (some already vulnerable), and potential global recession just when the economy recovered from Post-pandemic inflation. Meanwhile in Europe. Here the public debt yields have also triggered sympathy. British bonds have reached 5.6% yields – levels not seen since 1998–and the pressure on the Spanish and European debt is inevitable if the situation continues to deteriorate. The European Central Bank and the Bank of England could be forced to advance or intensify its type cuts to contain damage, especially if the European economy begins to show signs of contagion. For Spain, with A public debt exceeding 100% of GDPa sustained increase in financing costs would threaten the government’s budgetary and investment plans. Just when they are most needed to cushion the impact of the commercial war. The money trail. The financial world has taken a historic turn in just one week. If the American treasure bonds cease to be the safe shelter par excellence, we enter an unknown territory for the global economic system. When what seemed impossible happens, panic can become a self -fulfilling prophecy. It does not seem to make sense and ask whether there will be consequences or not, but rather how deep they will be and who will pay the invoice. In Xataka | The United States created modern globalization. Now he has become his main devastating Outstanding image | Xataka

€8,000 average debt for each tenant

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In Spain, becoming a homeowner is not simple task. Neither is being a tenant. After years getting more expensive almost uninterruptedly, rental prices have reached their highest level since at least 2006. And that, among other things, has led to a very significant percentage of Spanish households (higher than the rest of the European Union) are squeezing more than advisable their wallets to meet their landlords every month. Now we know a fact: to what extent this perfect storm, a mixture of skyrocketing rents, loss of purchasing power and homes overloaded of expenses, is increasing defaults among tenants. The big question is… Is late payment the canary in the mine of the housing crisis facing the country? Although the situation today is different from that of 20 years ago, in the run-up to the real estate crisis of 2008 it was certainly a clear ‘red flag’. One piece of information: 7,957 euros. Studies are just that: studies. With its biases and limitations. a few days ago Rental Observatorya platform powered by Rental Insurance and in which the King Juan Carlos University, threw one with an interesting approach: its authors analyzed the levels of late payments that the Spanish residential rental market endured over the past year and discovered that the level of non-payments has grown significantly. As a summary, they leave out a figure: 7,957.6 euros. And what does it mean? That is the average delinquency that, according to the calculations Rental Observatory, was recorded last year among urban rentals in Spain: 7,957 euros. The data is interesting for several reasons. The first is its amount, which is equivalent to seven months of income. The second is that it shows that the problem of non-payments is getting worse in Spain. Those almost 8,000 euros represent a 4.23% increase with respect to the previous year. Curious yes, surprising no. The percentage is interesting, but probably surprises few in the sector. After all, it arrives in a context marked by the increase in price of rents after years of increases and the high overexertion rate that weighs down the pockets of Spanish tenants. “The debt increases continuously year after year, in the same way as prices and the financial effort that landlords dedicate to paying the rent,” add the report. Its authors recall in fact that the average rental price stood at 1,117 euros last year in Spain and, on average, tenants dedicated 34% of their income to paying their landlords. What’s more, the 4.23% increase in delinquencies between 2023 and 2024 shows a certain slowdown in the expansion of delinquencies; but the observatory doesn’t think that’s a good sign. If in 2024 defaults have grown at a slower rate than other years in Spain, it is due, their technicians clarifybecause fewer houses have simply been rented. “In any case, it represents a considerable amount of debt.” Three facts to reflect on. Rental Insurance is dedicated to the management of leases, making it an involved party in the market; But there are other observatories that help to understand to what extent things have become complicated for tenants. The first is the drift of rents. Idealistic calculate that in Spain, at a general level, the m2 of rental housing costs 13.5 euros, 11.5% more than a year before and almost double the €7.2 that was charged in 2014. This evolution has little to do with that recorded in salaries. The INE tables show that in 2022 the average income per inhabitant was at 14,082 euros facing the 9,098 of 2012. In general and taking into account the CPI drift, BBVA Research estimated Recently, since 2020, we Spaniards have suffered a loss of purchasing power of around 20%. In short: much more expensive housing and households with less economic muscle to pay for it. The tenants, suffocated. The third key has a lot to do with the previous two and is the “overexertion rate.” A few months ago, CaixaBank Research calculated it taking into account the percentage of households that are forced to allocate more than 40% of their income to pay for their homes, both bills and rent to their landlords or mortgages, depending on whether they live on rent or own. It turned out that in the specific case of the tenants that indicator was 30.6%. Why is it important? Because it is well above the EU average, where the rate of overexertion among tenants is of 20.3%, and of course that of homeowners who pay mortgages (4.4%). The data reflects that it is common for tenants to spend more money on their home than they should taking into account their income level. In general, the Bank of Spain advises That this economic effort does not exceed 35% of the salary. In 2020, an average Spaniard booked 41% of your gross salary to meet their landlords. “A close relationship”. These data are not trivial. The observatory appreciate “a very close relationship between average late payment and the financial effort” that tenants make to pay their rents. “Generally, those areas where tenants dedicate most of their income to rent coincide with those with the highest level of debt,” they clarify. And for example, a fact: in the 10 provinces where tenants dedicate more than 35% of their earnings to rent, late payments far exceed or are close to 6,000 euros on average. Question of how much… and where. The Rental Observatory study raises another interesting idea: late payment in the rental market is increasing in Spain, but not in all regions equally. The greater increases They have been recorded in the Valencian Community (7.21%) and the Balearic Islands (6.8%) and the Canary Islands (6.79%), while in Extremadura the increase was noticeably smaller, 1.76%. The photo also changes considerably if we look at the amount of the average debt. In Catalonia it stands at 10,996 euros, in the Balearic Islands at 10,233 and in Madrid at 9,812, three figures significantly higher than the national average (7,957) and that far exceed the data for … Read more

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