Banco Santander has suspended payments in its largest real estate fund in a decision which has left 43,200 clients with their investment frozen.
The fund, Santander Banif Inmoboliario, has assets of 3.2 billion, but those who now ask for their original investment will be paid ten per cent.
It comes as the bank finds the fund unable to meet recent requests for withdrawals amounting to 2.617 billion, some 80% of the total.
The decision to freeze the fund is a first in Spain, although it is contemplated in law, with the bank asking the regulator CNMV for a two year frozen period. It comes despite the bank’s announcement last month of profits of more than 8 billion €.
