Bank of Spain released its balance sheet data for August:
Lending to credit institutions increased during August as well, by €9.47bn, using both MROs and LTROs. This lending was used to finance outflows since Target2 liabilities increased by €14bn to €428.62bn (more than 40% of GDP). The increase in external liabilities was also financed by a further drop in the deposit facility of €3.72bn, while government deposits grew somewhat to €6.42bn (+€1.1bn). All in all, although the growth rate in T2 liabilities clearly slowed, outflows continued, increasing financing difficulties for Spanish banks. It is no coincidence that BdE activated ELA financing on a limited basis. We ‘ll see if the recent OMT bull market resulted in net inflows in Spain during September.
BdE also released data on government debt based on the excessive deficit procedure. Government debt is now 75.9% of GDP (compared to 69.2% at the end of 2011). The increase is attributed to long-term loans which increased from €114.67bn to €148.78bn (+€34.11bn) in one quarter. These loans were taken mainly by ‘Other units classified as central government’ as is evident in the corresponding table. Debt will most probably register over 80% by the end of the year, while taking into account the €100bn EFSF loan and other debts (such as public enterprises and unpaid bills) it will be close to the 100% mark.
On a related development, home prices fell 3.3% on a quarterly basis and 14.4% from a year earlier.
Update: ftalphaville has a very nice analysis on Spanish deposit flight. Worth a read.
Σχολιάστε
Comments feed for this article