August 16, 2007 / 4:10 PM / in 11 years

UPDATE 2-Spanish fund limits withdrawals

(Adds Banca March confirmation, statement to CNMV)

By Robbie Hetz and Clara Vilar

MADRID, Aug 16 (Reuters) - Spanish fund March Monetario Dinamico has limited withdrawals for its around 3,000 investors due to knock-on effects from the world-wide credit squeeze, a Banca March spokesman said on Thursday.

The limitation on withdrawals from the 250 million-euro ($337 million) fund of funds is due to the freezing of BNP Paribas fund Parvest Dynamic ABS, Banca March said in a statement to the Spanish stock market regulator.

The Banca March spokesman said the limitations of withdrawals were restricted to just the 5.6 percent weighting of the BNP Paribas fund and that investors could still access 94 percent of their cash.

BNP Paribas, France’s biggest listed bank, froze 1.6 billion euros worth of funds last Thursday, citing the U.S. subprime mortgage sector woes that have rattled financial markets worldwide.

Subprime mortgages are the riskiest property loans, often extended to people with payment difficulties or a bad credit history.

The news came as Spain’s blue-chip Ibex 35 index suffered its worse day of losses in over three years on Thursday, with a fall of 3.72 percent on fears the worsening credit environment could drag on growth.

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