SPAIN DEREGULATES BANK DEPOSIT INTEREST RATES

  Spain's Finance Ministry deregulated bank
  deposit rates in an effort to raise competition among banks and
  bring legislation into line with the European Community (EC), a
  ministry spokesman said.
      The measure was published today in the Official State
  Gazette. It takes effect tomorrow and lifts restrictions on
  rates, now limited to six pct on deposits of up to 180 days.
      The government also enacted a decree cutting to one pct
  from 13 pct the proportion of total assets which banks must
  lend at favourable rates to industries classified "of public
  interest."
      Some bankers expect the deregulation of rates to result in
  a 20 pct drop in profits this year.
      Secretary of State for the Economy Guillermo de la Dehesa
  told Reuters in a recent interview the reduction in fixed asset
  investments would offset losses from the rate liberalisation.
  

