Spain’s banks borrow record €375.55bn in July
Borrowing of Spanish banks from the European Central Bank hit a record high of nearly €376bn in July, according to the latest figures published by Spain’s central bank.
Data released today showed that net borrowing rose from €337.21bn in June to €375.55bn in July, increased for the tenth month in a row.
Gross borrowing reached €402.19bn during the month. The figure represents almost 33% of the total gross borrowing by all eurozone lenders.
Meanwhile, deposits in the ECB’s marginal deposit facility remained steady at €26.64bn in July.
Borrowing was driven by the domestic purchase of government debt, as foreign investors reduced their exposure to Spanish bonds.
Domestic lenders increased their holdings of sovereign bonds by €84bn in the first six months of the year while foreign institutions reduced their investments by €78bn.