News Column

Amount of Bad Loans Hits New Record in Spain

Nov. 19, 2012

The share of bad loans on Spanish banks' balance sheets rose in September for the 18th consecutive month, the Bank of Spain said Monday.

The amount of unpaid loans climbed to the record level of 182 billion euros (231 billion dollars) or 10.7 per cent of total debt, up from 10.5 per cent in August. Year-on-year, the increase was 42 per cent.

A loan is regarded as having gone bad if payment has been delayed for three consecutive months.

Spain's unemployment rate has risen to 25 per cent, leaving a growing number of individuals and companies unable to repay their debts.

Spain has sought up to 100 billion euros in eurozone aid for its banks in an attempt to ward off a full-scale international bailout.

Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH

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