Spain's Floods: A Financial Deluge

The recent floods in eastern Spain have caused damages exceeding 10 billion euros, with banks exposed to 20 billion euros in loans. The government has allocated 10.6 billion euros for relief. The disaster primarily affects the Valencia region, with significant financial exposure for banks and insurance claims likely to rise.

Extreme flooding in eastern Spain is projected to cause damages over 10 billion euros, while banks face a loan exposure of 20 billion euros, according to local business representatives and a Bank of Spain official.

The government announced a relief package of 10.6 billion euros, as at least 217 people have died, and more remain missing in what is considered Europe's worst flooding in decades.

The Valencia region is the most affected area, with banks announcing around 13 billion euros in household loans and another 7 billion for companies at risk. Angel Estrada of the central bank stressed the need to handle loan moratoriums to prevent credit reclassification.

(With inputs from agencies.)