Spain: Barclays pulls out capital fearing exit from eurozone

"Significantly lower" possibility for Italy

27 July, 14:21

(ANSAmed) - MADRID, JULY 27 - Barclays bank withdrew capital from its Spanish and Portuguese branches as a preventive measure in case the two countries should leave the euro, El Pais daily reported today, citing sources with the British bank.

Barclays took a number of measures to reduce the bridge between its assets and funding provided by the group. Up until today, London covered for the needs of its Madrid branch but this increased the risk of losses in case Spain and Portugal were to leave the eurozone, which is "significantly less likely" in Italy's case, the bank said. The withdrawal of capital was one of the measures adopted together with funding cuts to the Spanish branch in six months, from 12.100 to 1.550 pounds - from 15.5 billion euros to 3.2 billion. The Spanish branch of the bank has demanded 8.2 billion euros in order to compensate for the cuts. A similar operation has been carried out in Portugal, where funding was brought down to 3.700 pounds from 6.900. (ANSAmed).

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