BANK OF SPAIN SUSPENDS ASSISTANCE, DRAINS FUNDS

  The Bank of Spain suspended its daily
  money market assistance and offered to drain funds with three-
  and seven-day repurchase agreements at 12-1/2 pct, money market
  sources said.
      The sources said the measures were a further attempt to
  rein in money supply and were likely to force some institutions
  to scramble for funds before the 10-day accounting period for
  reserve requirements closes on Monday.
      The bank, which raised its rate for ordinary overnight
  assistance to 13-3/4 from 13-1/2 pct on Wednesday, opened its
  special borrowing facility for overnight funds at 14-1/2 pct.
      Money market sources said institutions in need of funds
  were likely to have to return to the bank tomorrow for further
  assistance.
      The bank rarely invites applications for ordinary
  assistance on a Saturday and the sources said it was more
  likely to open its special borrowing facility again.
  

