MercoPress. South Atlantic News Agency

Spanish losses

The Argentine crisis so far has cost the main Spanish companies with investments in the country an estimated 10,9 billion US dollars according to one of Madrid's main financial newspapers, Expansión.

Almost 8,1 billion US dollars correspond to the 2001 financial year and the rest to the first quarter of 2002. The company with the greatest losses is Repsol-YPF, Spain's main oil conglomerate, followed closely by Telefónica.

Expansión reports that Repsol YPF was forced to inject 2,730 billion Euros in fresh funds in 2001 and so far this year has lost 220 million US dollars, plus a drop in company assets estimated in another one billion US dollars.

Besides Telefónica, Spain's main banks have suffered the full impact of the crisis, Banco Santander Central Hispano and Banco Bilbao Vizcaya Argentaria, and so have electricity plants and natural gas distribution.

Since Spain is Argentina's main foreign investor these losses have not gone unaccounted in the Madrid Stock Exchange, where the Ibex-35 index records an accumulated drop of 5,33%.

Spanish utility companies and Repsol-YPF have been banned by the current Argentine government, -- fearing hyperinflation --, from raising local rates and fuel prices. The Duhalde administration is also insisting in taxing oil and natural gas exports, one of the few certain sources of revenue.