Bank of Spain Governor: Catalonia’s independence may led to “frozen bank accounts”

Barcelona (CNA).- The Bank of Spain warned about the risks of “frozen bank accounts” if Catalonia becomes independent. Its Governor, Luis María Linde, stated this Monday that “situations of grave tension”, referring to Catalonia’s push for independence, may led to ‘corralitos’ a word popularised in Argentina which refers to frozen bank accounts. Indeed, Linde actually named Argentina and Greece as examples. President Mas has described the statements as “irresponsible, immoral and indecent” and accused Linde of behaving like “a PP candidate” instead of someone in an “institutional” position. Mas also denied the possibility of a ‘corralito’, because Spain is not interested in damaging the Catalan economy. Moreover, he accused the Spanish institutions of “intoxicating” Catalan society just to keep their “status quo and their power”.

The Bank of Spain Governor, Luis María Linde, stated that an independent Catalonia will “automatically” be outside the Eurozone. “Leaving the EU would automatically mean leaving the Euro” he stated. Linde’s comments come after the declaration signed on Friday by the Spanish banking sector in which they claimed that “any political decision which would imply breaking the rules in force” would result in “exclusion from the EU and the Eurozone”.

When asked about the viability of an independent Catalonia, the Bank of Spain Governor answered that “such an abstract question isn’t of much interest”.

President Mas: Linde is behaving like a “PP candidate”

President Mas described Linde’s statements as “irresponsible, immoral and indecent” and accused Linde of behaving like a “PP candidate” rather than someone in an “institutional” position. Mas responded to Linde’s declarations this Monday at a press conference with Raül Romeva and Oriol Junqueras from pro-independence unitary list ‘Junts Pel Sí’ (in which President Mas comes fourth). He assured those present that he would escape from a country which only inspires fear in its citizens and reiterated that an independent Catalonia won’t be banned from the EU. “It would be revenge, an act of rage that would have to be joined by the rest of Member States, which won’t support it in any case”, he assured.

Referring to Linde’s statements and those from the banking sector, he lamented that Spanish institutions “intoxicate” Catalan citizens in order to maintain their “status quo and their power”.  
The Catalan President admitted that there is an official document, written by the Catalan Government’s Advisory Council for the National Transition (CATN) that considers the possibility of a ‘corralito’. However, he pointed out that it could only happen in the event of a “no negotiation scenario” with Spain. “Why should Spain be interested in damaging the first economy in the State and the most important in Southern Europe?” he asked. “We are not in the Middle Ages” he added, “they know perfectly well that they are lying. This is not information, it is intoxication”.

The importance of reaching an agreement

President Mas argued that “Spain has a lot to lose with Catalonia” and named the public debt as an example. He suggested that Linde should be analysing what would happen if Spain and Catalonia wouldn’t reach any agreement on how to redistribute the debt. Not reaching an agreement would mean a cost “that Spain won’t be able to face”.

Following Mas’ rebuke, pro-independence unitary list ‘Junts Pel Sí’ top candidate, Raül Romeva, assured that Catalonia’s future will be decided by its people and not “by the Spanish government, nor Juncker, nor banks”. Oriol Junqueras, number five in the ‘Junts Pel Sí’ candidacy, pointed out that before being banned from the EU, Catalonia would first need to be recognised as an independent State. 

Catalan National Assembly: A 'corralito' would be “impossible”

According to the Catalan National Assembly (ANC), a grassroots pro-independence civil society organisation, a 'corralito' would be “impossible” because the European Central Bank (ECB) would not put CaixaBank and Banco Sabadell, which are the two major banks in Catalonia, at risk. “It is as false as it is unacceptable” stated ANC.

In this respect, the ANC reminded the Governor of the Bank of Spain that the Bank has neither supervisory responsibilities nor control over the liquidity of Catalan banks, functions that both depend on the ECB, and which are under the direct supervision of the ECB itself. Moreover, the ANC said that Linde is in the trust of the Spanish government and that he represents the interests of Spain’s ruling conservative and Spanish nationalist popular party, PP.

PP applauds Bank of Spain

Conservative People’s Party (PP) denied pressuring employers and the Bank of Spain to make statements about Catalonia. PP’s Deputy Secretary of Communications, Pablo Casado, stated that Mas “humiliates” banks because he “thinks that he lives in a feudal kingdom”.