Bank of Spain warns of indirect hit to economy, banks from Ukraine conflict

By Jesús Aguado MADRID (Reuters) – Russia’s invasion of Ukraine and the subsequent acceleration of inflation could have a significant indirect impact on the Spanish economy and banks, even though their direct exposure is very limited, the Bank of Spain said on Wednesday. Spanish lenders in general rank among the less exposed to Russian credit, with the Spanish central bank estimating their credit risk at just above 700 million euros ($742 million). However, the central bank said a potential combination of higher prices and higher interest rates in the short term could erode households’ and com…

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