BANK OF SPAIN PROVIDES YEAR RECORD ASSISTANCE FUNDS The Bank of Spain provided 1,145 billion pesetas in assistance funds which bankers said reflected fears of fresh increases in overnight rates. The daily auction was the biggest of the year and comes after the previous record set last June 6 of 1,240 billion pesetas. A spokesman for one of Spain top five banks said higher overnight call money rates were expected in the short term in view of disappointing money supply figures for February. The M-4 money supply, measured as liquid assets in public hands, rose 16.7 pct last month against 8.1 pct in January and compared with this year's eight pct target. Money supply growth was 11.4 pct last year. The central bank on Tuesday raised overnight rates by a quarter of a percentage point to 14 pct on demand for 746 billion pesetas. Rates stood at 12.1 pct at the start of the year and have been increased to drain liquidity on rising demand for funds. "The policy is proving counter-productive and rates will have to come down in the long-term," the bank spokesman said in reply to Reuters enquiries. He said higher rates were fuelling an influx of short-term speculative capital from abroad. "At least 800 mln dlrs of current excess liquidity in the system is convertible pesetas from West Germany and other countries with much lower rates," he said.