SPAIN LIBERALISES SOME EXCHANGES CONTROLS
The Bank of Spain said it approved a
package of measures liberalising some exchange controls and
easing some restrictions on the raising of foreign funds.
    It said in a statement that the circulars were the latest
steps to deregulate Spain's financial sector -- a move
triggered by entry into the European Community (EC) a year ago.
    A Bank of Spain spokesman said in response to an enquiry
from Reuters that the new measures were not yet in force and
added that he could not say when they would take effect.
    The statement said one measure meant that residents in
Spain would now be able to borrow up to the equivalent of 1.5
billion pesetas from abroad, providing that the average length
of the loans was at least one year, that the borrower was not a
Spanish branch of a non-resident lending agent, and that the
loan was denominated in a currency traded in Spain, in
convertible pesetas or in European Currency Units (ECUS).
    All foreign loans not approved under those rules will be
approved automatically if the Bank of Spain does not
specifically reject applications within 15 days of receiving
them.
    The statement said another measure frees most of the
restrictions on how banks can capture foreign funds and lend
them.
    The existing limit on foreign obligations of three times
the value of capital and reserves of a borrower bank is
abolished, although the Bank of Spain will continue to monitor
the banks' obligations.
    Restrictions on the maximum time difference between the
maturity of foreign assets and obligations are also abolished
and regulations governing risk by country are loosened.
    The latest measures follow recent moves to abolish the
maximum interest rates banks can offer for some peseta funds
and the lifting of restrictions on investments abroad by
Spaniards.
    The government has also allowed foreign companies to be
quoted on Spanish stock exchanges and has promised further
reforms of the domestic financial system.
 Reuter
