International Monetary Fund. Monetary and Capital Markets Department
INTERNATIONAL MONETARY FUND
This technical note analyzes selected issues related to four areas of the legal system for
insolvency and creditor rights with a particular relevance for financial stability and the
resolution of legacy assets. These are specifically, creditor/debtor rights, corporate workouts/outof-
court regimes, the legal framework for insolvency, and institutional frameworks.
The regime for creditor/debtor rights is largely in line with international best practices. With
respect to creditor/debtor rights, the registration of real estate mortgages is efficient, reliable and
cost effective; due to nonperforming loans (NPLs), real estate foreclosure has been extensively used
in Spain. Real estate collateral plays a critical role in Spain due to the fact that a very large
percentage of loans are collateralized with real estate. Stakeholders however reported that the
duration of foreclosure has increased to around 24 months recently due to various facts
jeopardizing the prompt realization of the collateral. Spain also has a register for security rights over
movable assets which is computerized and efficient; due to the focus on financial collateral it is
limited to such purpose. The enforcement on movable assets is reportedly somewhat lengthy.