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Montevideo, September 26th 2018 - 13:13 UTC

Risk of 'corralito' (freeze of bank accounts) if Catalonia secedes from Spain

Wednesday, September 23rd 2015 - 10:11 UTC
Full article 17 comments
Linde recalled experiences in Latin American countries and most recently in Greece, where capital controls limited people’s ability to access their own assets. Linde recalled experiences in Latin American countries and most recently in Greece, where capital controls limited people’s ability to access their own assets.
Premier Artur Mas said that if pro-independence parties win a majority in the regional parliament, there will be a mandate to push ahead with secession plans Premier Artur Mas said that if pro-independence parties win a majority in the regional parliament, there will be a mandate to push ahead with secession plans

Bank of Spain governor Luis María Linde on Monday stated that if Catalonia secedes from Spain, there could be a risk of a corralito, the popular term for economic measures that include a freeze on clients’ accounts, with the aim of halting a potential bank run.

 At a Europa Press breakfast meeting with the media on Monday morning, Linde alluded to situations seen in Latin American countries and most recently in Greece, where capital controls limited people’s ability to access their own assets.

But the governor also underscored that for Catalonia, this situation is “a highly unlikely prospect.”

Residents of Spain's richest region are due to go to the polls on Sunday, to vote in elections that have been positioned by politicians as a de facto referendum on independence. Artur Mas, the current regional premier, has stated that if pro-independence parties win a majority of seats in the regional parliament, they will have a mandate to push ahead with plans to secede from Spain.

In such a scenario, the newly independent state would no longer have access to European Central Bank financing, and would also automatically leave the Euro zone, said Linde.

Asked about the viability of the Catalan economy in the context of a go-it-alone state, Linde went no further than saying that “there are smaller countries out there.”

In 2013, the head of Spain’s central lender had warned that independence would lead Catalan banks to bankruptcy. Also in 2013, a report commissioned by the Catalan government warned about the risks of a corralito in the event of a breakaway from Spain.

Drafted by the Catalan Advisory Council for National Transition ahead of the November 2014 informal referendum on independence, the study was one of around 20 documents commissioned in connection with the independence bid.

Categories: Economy, Politics, International.

Top Comments

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  • ChrisR

    Sp they will do an argie and sieze the money!

    That would be a stunning move and guaranteed to create even more problems for Spain.

    What is it about these Spanish 'law makers' are they all brainless, it certainly seems so?

    Sep 23rd, 2015 - 11:01 am 0
  • Voice

    According to Terry Hill this would be against International law concerning Self-Determination...
    My argument is that there must be exceptions...
    Apparently there appears to be one right there....
    ...cue...Terence Hill.....;-)

    Sep 23rd, 2015 - 04:26 pm 0
  • gordo1

    @1 ChrisR

    Did you support the Scottish referendum idea of independence? What do you have against Spain? Have you ever even been there?

    The Spanish Government is doing its best to avoid the cessation of Cataluña just as the the UK political parties fought against the machinations of the SNP.

    Sep 23rd, 2015 - 06:31 pm 0
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