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Capital Outflows Reached Record in Spain
Posted On 01 Jun 2012
In the first quarter of this year, the net outflow of capital from Spain reached 97,090 million euros.
The Spanish are concerned about the health of their banks, for that reason the government hired independent auditors to evaluate the financial system in an attempt to restore confidence in banks.
The European Commission (EC) provided support on Wednesday, offering a rescue fund for the euro area to recapitalize Spanish banks and give more time to reduce the budget deficit. Spain must submit restructuring plans to the EC Bankia.
If the Spanish government does not take immediate action it would lead to further cuts.(PLS)
