Bad Loans Hit New Record at Spanish Banks
The mountain of bad loans held by Spain's banks grew to a new record in November, with more than one in nine at risk of not being repaid, central bank figures showed on Friday.
The level of doubtful loans -- mostly real estate credits -- reached 11.38 percent of total loans, up from 11.23 percent in October, the Bank of Spain said in a report.
It was the highest level since existing records began in 1962.
The total value of doubtful loans was 191.63 billion euros ($258 billion) in November, the central bank said.
Spain secured agreement in June last year for a European Union rescue loan of up to 100 billion euros to shore up its banks, which have been struggling with bad loans since a 2008 property crash.
A frist installment of 39.5 billion euros was disbursed in December, of which 37 billion euros went to four banks, including hardest-hit Bankia, that have been rescued with state money and nationalized.
Source: Agence France Presse
| Copyright © 2012 Naharnet.com. All Rights Reserved. | https://cdn.naharnet.com/stories/en/68831 |