MADRID (AP) — Spain's central bank says €163 billion ($200 billion) has been pulled out of Spain in the first five months of the year, reflecting plunging confidence in the government's ability to manage its financial problems.
Figures released Tuesday showed €41.3 billion was withdrawn in May, compared to €9.5 billion in the same month last year. May saw Bankia, one of Spain' largest banks, announcing it would need a whopping €19 billion in rescue funds.
Bankia's announcement spurred the government to seek a rescue loan of up to €100 billion from its eurozone partners.
The net capital outflow stems from foreigners selling stocks and shedding Spanish state debt and private bonds, as well as Spanish banks and citizens depositing money abroad.
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