Official warns that Spain will feel impact of Lehman

17th September 2008, Comments 0 comments

A central bank manager states that global financial upset will affect the Spanish economy.

17 September 2008

MADRID -- After two days of upset on global markets due to the bankruptcy of US investment bank Lehman Brothers, Spain's stock exchange index ended nearly flat on Tuesday, rising 0.11 percent at 10,911.50 points after sharply dropping 4.5 percent on Monday.

However, other European stock markets ended Tuesday with heavy losses.

Despite Tuesday's assurances by the Bank of Spain that Spanish banks have "practically" no exposure to Lehman Brothers, José Luis Malo de Molina, the general manager of the central bank's research department, believes that global financial upset will affect the economy.

"Nevertheless, we have to recognize that this situation means a worsening of the global financial crisis, which will impact the Spanish economy as well", he said.
[El Pais / Expatica]

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