In this section we will be studying how the activities in the sector and in CERSA have evolved, paying particular attention to the data related to solvency and bad debts.
With a view to resolving this situation CERSA has increased the coverage of the financial transactions for working capital from 30% to 50% of the re-warranty package.
CERSA re-guaranteed 50% but with the ultimate backing of the ICO so that it is not the CERSA but rather the ICO which assumes the risk and any default does not affect the quality ratio, Q.
In the interviews with CERSA and CESGAR, they said that this credit line was not used much in 2011 as it could be considered inconvenient and complicated because of the middle party who had to assess the operation beforehand.
That year 1208 operations were signed (which amounted to a risk for the CERSA of 29,441,894 euros).
The levels of coverage of CESGAR have remained between 30% and 35% of risk of the sector; the percentage of re-warranty for financial transactions will, naturally, be higher, given that the figures published by CESGAR include technical guarantees which are not re-guaranteed by CERSA.
In this section we have studied the development of the rates of bad debts and solvency, both in the sector and CERSA.
Also we can see how the ratio of bad debts and assets of CERSA has developed.
Finally we have calculated the cost of defaults to the CERSA since the re-warranty model came into effect in 1995--based on defaults net of recoveries.
5% of risks re-guaranteed by CERSA, or a similar figure for re-warranty from the Autonomous Communities, for the calculation of the capital compliance ratio.