Company: BBVXF
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001193125-25-198517
Chunk: 732

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-09
Form: 424B3
Chunk 732
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 asset given the global economic landscape. In its 
 currency pair with the euro, it appreciated to levels not seen since 2002, falling below parity for a few weeks. |

A-606

| – | Emerging currencies generally found support, as the monetary tightening cycle began earlier in these economies. 
 Sovereign risk premiums inched upwards but remained far from record high levels.                                |

| – | Financial authorities believed that the risks to financial stability increased over the year due to the deterioration 
 of financial and economic conditions, meaning that the banking industry faces higher risks in the medium term.        |

Political and regulatory environment Impacts stemming from the war in Ukraine The war between Russia and Ukraine, which broke out at the end of February 2022 and which is still ongoing today, prompted governments to adopt plans and measures similar to those proposed during the health emergency in order to mitigate the impacts of the conflict (ICO guarantee lines and direct aid for affected sectors). Banco Sabadell’s credit risk with both individuals and companies from these countries is limited, and the same is true of its counterparty credit risk with financial institutions from both countries. Specifically, the largest exposures relate to mortgage loans granted to customers of Russian, Ukrainian or Belarusian nationality residing outside Spain, although these amount to less than 300 million euros. The real estate assets securing the aforesaid exposures are located in Spain, with an average loan-to-valueof 39%. Furthermore, these are transactions that have been on the balance sheet for an average of six and a half years. ICO guarantee line in the context of war in Ukraine On 29 March 2022, the government approved the plan outlining its response to Russia’s invasion of Ukraine through Royal Decree-Law6/2022. The response plan contained, among other measures, an ICO guarantee line of 10 billion euros, designed to ensure that companies affected by the rise in costs of energy and commodities caused by the conflict could have access to liquidity. The features of the guarantee line included, among others: all companies and self-employed professionals would be able to benefit from it, with the exception of the financial and insurance sectors; the deadline for applying for these guarantees was 1 December 2022; and banks would need to keep their customers’ working capital lines open until 31 December 2022. Subsequently, on 10 May 2022, a Council of Ministers’ agreement approved the first tranche of this guarantee line, amounting to 5 billion euros, stating that its granting was subject to the