LONDON (MNI) – UK monetary financial institutions sharply increased
their exposure to Germany and cut it to France, the US and Spain,
according to Bank of England data published Friday.
The UK MFIs, largely the banking sector, increased total foreign
claims by $83.6 billion in the first quarter, with the total rise
dwarfed by the $189.4 billion increase in claims on Germany, while
claims on France were slashed by $64.5 billion.
Claims comprise such things as the MFIs’ loans and advances to a
country and their holdings of some investments there, such as government
bonds. Germany has been the safe haven of choice through the Eurozone
crisis.
The BOE data showed UK MFIs’ external liabilities rose by $86.4
billion in Q1. Liabilities comprise loans, deposits and so forth
received by the MFIs from overseas.
The biggest rise in liabilities came from Italy, up Stg29.7
billion, Spain, up Stg26.7 billion, the US, up Stg 26.3 billion and
Germany, up Stg20.9 billion, with Switzerland showing the largest fall,
at Stg25.5 billion.
The BOE estimate follows other reports of flight out of euro zone
periphery assets during Q1 this year. The pace of exit is thought to
have significantly accelerated in recent weeks.
–London Bureau; Tel: +442078627491; e-mail: drobinson@marketnews.com
[TOPICS: M$$BE$,MABDS$]
