Bank boss says foreign investors punishing Spain
Monday, September 8, 2008 @ 1:34 PM
Hmm, saw this article today. I don't really think it's foreign investors that are to blame. What about the corrupt town halls and greedy developers? He doesn't seem to mention those!
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Foreign investors are being excessively negative towards Spain, the chairman of the country's second largest bank said in a newspaper interview published on Sunday.
"Spain has its problems but it is being punished in my view excessively, by foreign investors," BBVA's head Francisco Gonzalez was quoted as saying by daily ABC.
"That has meant the share prices of Spanish banks and other companies are below what they should be."
He said BBVA was trading at a price which did not reflect the quality of the bank.
The bank's shares closed down 3.0 percent on Friday at 11.16 euros.
Spain is suffering the joint shocks of the global credit crunch and the end of its decade-long housing boom which took unemployment to a 10 year high of 2.5 million in August.
Spanish GDP grew at just 0.1 percent in the second quarter from the first, making for expansion of 1.8 percent compared with the previous year which was down from 2.6 percent in the first quarter.
Some economists expect the economy to see negative growth in the third and fourth quarters.
Asked when he expected the Spanish economy to recover from its current problems, Gonzalez said the whole of Europe was dependent on recovery in the United States and the global economy was in unknown territory.
Source:
Retuers