Foreign Funds Concern Over Sanchez’s Threat to Resign
Since the announcement, law firms and consultancies have received a flood of calls from their international clients. “In addition to the uncertainty, on Monday we will be able to assess the consequences,” investors say.
Letter from the Prime Minister Pedro Sanchez announces possible resignation caught it too unexpected for managers of large foreign funds. International investors have already shown their anxiety after publication m.isiva and continue to look forward to what may happen in the coming hours in the Spanish government.
“It is still early to see the effect, but despite the fact that we have been under pressure for four days, “And only when Monday comes will we be able to appreciate the importance of the situation.”confirm EXPANSIÓN from one of the major international investment funds.
Most of the fund managers not present in the country called their offices and main advisers in Spain yesterday. Several large firms, both national and international, present in Spain told the newspaper that they had received calls from clients asking about the various scenarios that may be open and the situation in which their operations remain and how the possible resignation of the Prime Minister may affect them.
Investors told them that there was less fear for now and that They are not currently considering ceasing operations. Of course, the funds recognized the surprise to their lawyers and advisors and asked them keep a close eye on what happens in the next few hours, which confirms investors’ concerns.
From the offices, they note that such situations always have an impact on their international clients, who At stake are operations requiring months of work and hundreds of millions of euros.. According to lawyers and consultants, Political instability does not help them make investment decisionsn. For this reason, some funds have ordered their lawyers and advisers not to make any strategic decisions and to paralyze non-urgent decisions until Monday, when Pedro Sanchez’s will becomes known.
The calls from major international foundations came after major international media headlines echoed the letter published by Sanchez. The media loves Financial Times, BBC, Corriere della Sera, Le Monde And Timeamong many others, highlighted information in their publications, both digital and paper.
This news also reached North American media. Yesterday morning, The newspaper “New York Times or Washington Postcarried very noticeable information in their publications. Bloomberg also responded to Sanchez’s letter and highlights the possibility of holding new elections in Spain. “Sanchez says he is considering resigning as prime minister,” headlines from a North American agency.
The media highlights the words “corruption” or “investigation” in headlines.Telegraph Headline: “Spanish government president suspends duties amid investigation into his wife’s case.” In its turn, Financial Times under the headline “Spain PM Considers Resigning While Wife Faces Corruption Investigation.”
Information about a possible resignation also keeps European institutions in suspense. Middle US politician, based in Brussels, talks about “a bomb in Spain.” Meanwhile, the European Union also demonstrated its surprise, but did not enter into the discussion, as usual, but emphasized that this was an “internal problem” of the country.