Company: BBVXF
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001628280-25-047437
Chunk: 89

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-10-30
Form: 6-K
Chunk 89
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 pushing up long-term sovereign yields and weakening the U.S. dollar. These developments could trigger bouts of volatility, especially given the high public debt levels in both developed and emerging economies. The relatively high valuations of AI-related stocks are also a source of uncertainty, with potential implications in the financial markets.

The rise of trade protectionism and the growing rivalry between the United States and China could further intensify geopolitical tensions, especially in the context of the conflicts in Ukraine and the Middle East. In response to these risks and changes in U.S. foreign policy, the European Union has taken steps to increase military spending, which could support growth but also add upward pressure on inflation and interest rates in the region.

Overall, rising global geopolitical tensions are increasing uncertainty about the global economy and the likelihood of economic and financial disruptions, including a recession.

The Group is exposed to, among others, the following general risks related to the economic and institutional environment in the countries in which it operates: a deterioration in economic activity, including recessionary scenarios; inflationary pressures, which could trigger a tightening of monetary conditions; stagflation due to intense or prolonged supply shocks, including as a result of an escalation of protectionism or an increase in oil and gas prices; exchange rate fluctuations; unfavorable developments in the real estate market; changes in the institutional environment in the countries in which the Group operates, which could lead to sudden and sharp falls in Gross Domestic Product and/or changes in regulatory or governmental policy, including with regard to exchange controls and restrictions on dividend distributions or the imposition of new taxes or charges; high levels of public debt or external deficits, which could lead to a downgrade of sovereign debt ratings and even a possible default or restructuring of such debt; the impact of the current administration's policies in the United States, about which there remains a high level of uncertainty; and episodes of volatility in the financial markets, such as those observed recently, which could cause the Group significant losses.

In Spain, political, regulatory, and economic uncertainty could negatively impact activity. In Mexico, considerable uncertainty persists regarding the impact of the recently approved constitutional reforms, as well as the policies of the U.S. administration. In Turkey, despite the gradual improvement in macroeconomic conditions, the situation remains relatively unstable, with pressure on the Turkish lira, high inflation, a significant trade deficit, limited international reserves, and high external financing costs. Recent political and social tensions could also generate renewed bouts of financial volatility and macroeconomic risks. Furthermore, uncertainty remains regarding the impact of the geopolitical situation in the Middle East on Turkey