News Column

Bad Loans at Spain Banks Hit Record

August 19, 2013

The proportion of bad loans at Spanish banks rose to a record 11.6 percent in June, the central bank said on Monday.

Bad loans amounted to 176 billion euros (235 billion dollars) in June of a total of 1.52 trillion euros on the books of Spanish banks, marking a 0.4 per cent rise from May.

Bad bank Sareb has been absorbing toxic real estate assets held by Spanish banks in order to sell them.

Spain's property crash of 2008 left banks burdened with billions of euros in losses and prompted a restructuring process, which the eurozone is backing with more than 40 billion euros in aid.

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

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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