Spain: Public broadcaster RTVE accumulated debts of €800m, may go bankrupt

The public broadcaster RTVE accumulated debts of € 800 million, according to an audit by the Spanish government that was obtained by the newspaper El Mundo on 04/05/2014. In 2013, the group reported €860m in revenues, €960m in expenses and a net loss of €113.3m.

RTVE's capital stock amounted to €1.51bn at the end of 2013. Spanish law on limited liability companies provides for the dissolution of the company when its debt exceeds half of its capital stock. The Spanish government and the leadership of RTVE are currently working on several solutions to ensure the future of public broadcasting group, said El Mundo.

The first solution would be to use a portion of RTVE's capital stock to reduce its debts. The second would be an emergency contribution from the Spanish state, but that measure may prove unpopular, according to the Spanish daily. A third solution would be to reform the law on financing of RTVE, which since 2009 is only allowed to receive revenue contributions by telecommunications operators.

• There is no TV license in Spain and RTVE no longer receives advertising revenue…