Caixabank chairman warns of Catalan impact on Spanish economy

Credit: REUTERS/HEINO KALIS

The chairman of Spain's Caixabank said on Tuesday that uncertainty surrounding Catalonia was starting to have an impact on the Spanish economy.

Adds quotes, context

MADRID, Nov 19 (Reuters) - The chairman of Spain's Caixabank CABK.MC said on Tuesday that uncertainty surrounding Catalonia was starting to have an impact on the Spanish economy.

Catalonia has been back to the forefront of Spanish politics since protests broke out in the wealthy northeastern region last month after nine separatist leaders were given long prison sentences for their role in an illegal referendum and declaration of independence in 2017.

"The impact on the economy and businesses becomes worrying when this lasts for a long time," Jordi Gual told a conference in Madrid.

A snap national election on Nov.10 with inconclusive results has left the ruling Socialists courting Catalan separatists as they are trying to win enough support in a fragmented parliament to sustain a coalition government with the far-left Unidas Podemos party.

"We have lived tough times and we call for dialogue because the current situation is not good for the output sector," said Gual, who added Caixanbak had not weighed so far the impact of the Catalan environment on the bank's business.

Last month, Bank of Spain governor Pablo Hernandez de Cos said any further political uncertainty in the region could affect private sector investment decisions, posing another potential risk to the Spanish economy.

(Reporting by Jesus Aguado, writing by Jose Elías Rodríguez, editing by Ingrid Melander)

((jose.rodriguez@thomsonreuters.com; +34 91 585 8539; Reuters Messaging: jose.rodriguez.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More