Investors pull record amounts of money out of Spain
Agence France-Presse
A motorist, right, who got out of her car argues with a demonstrator as civil servants which included transport workers and police and firemen, out of uniform, blocked traffic during a protest against government cuts, in Madrid Monday July 30, 2012. Spanish and foreign investors have withdrawn a record 160 billion euros ($195 billion) from the struggling eurozone country this year, reflecting concerns over the economic outlook, official data showed Tuesday. AP PHOTO/PAUL WHITE
MADRID—Spanish and foreign investors have withdrawn a record 160 billion euros ($195 billion) from the struggling eurozone country this year, reflecting concerns over the economic outlook, official data showed Tuesday.
The Bank of Spain said investors took out 163.19 billion euros by end-May, a record amount since such statistics were first compiled in 1990 and compared with aggregate deposits of 14.6 billion euros in the same period last year.
The central bank said that in May 2012 alone, withdrawals came to 41.3 billion euros.
For all 2011, 68.3 billion euros left the country in search of a safe haven overseas as the Spanish economy slumped deeper into recession.
The effect is plain to see, with the Madrid stock market down nearly 30 percent so far this year while foreign investor holdings of Spanish debt instruments have plunged to 36.1 percent of the total in June from 56.27 percent a year earlier.
Follow Us
Recent Stories:
Short URL: http://business.inquirer.net/?p=74329
Tags: Banking , Finance , public debt , Spain
