Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 3

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 3
Chunk 3
---
. In Spain, political, regulatory and economic uncertainty has increased since the 2023 general elections, and there is a risk that policies could be adopted that have an adverse impact on the economy or the Group. There is also a risk that political tensions in other European countries could affect Spain. In Mexico, there is high uncertainty on the impact of the recently approved constitutional reforms, as well as on the policies of the new local government and the new U.S. administration (in particular, if protective measures adopted by the United States become more aggressive or persist over time, which could adversely impact the country’s economic growth). In Turkey, while there are signs of normalization in economic policy in general, and monetary policy in particular, since the general elections held in May 2023, macroeconomic conditions remain relatively unstable, characterized by pressures on the Turkish lira, high inflation, a significant trade deficit, low central bank’s foreign reserves and high external financing costs. In addition, regulatory and macroprudential policies affecting the banking sector, including measures adopted to increase the weight of Turkish lira-denominated assets and liabilities of the banking system, and economic conditions in Turkey, including changes in official interest rates (with Turkey’s real interest rate still being negative given the high inflation) have affected and may continue to affect the Group’s results. There is also uncertainty about the impact of the recent developments in the Middle East on Turkey. In particular, recent regime changes in Syria create opportunities, such as a potential increase in exports and lower migration pressures, but also risks, which could cause greater volatility of Turkish financial assets, among other possible consequences.
In Argentina, the risk of economic and financial turbulence persists in a context in which the new government has substantially modified the economic policy framework and has focused its efforts on implementing strong fiscal and monetary adjustments to reduce inflation. In Colombia and Peru, climate factors, political tensions and greater social conflict could have a negative impact on the economy. 
Further, the policies to be adopted by the new U.S. government are an additional source of uncertainty for the Mexican and global economy. During February 2025, the U.S. government imposed certain tariffs (some of which were subsequently delayed) on imports from Canada, Mexico and China, which resulted in China adopting retaliatory tariffs. If the announced tariffs affecting Mexico are ultimately implemented, this may have a material adverse effect on Mexico’s economy. These and other policies of the new administration—including fiscal, regulatory, industrial or foreign policies—could slow U.S. or global economic growth (especially, if