Spain banks’ bad loans hit record high in June
Spanish banks’ bad loans rose to a record high in June as assets tied to the country’s deflating property market soured further, keeping the financial sector at the forefront of investor concerns about the country’s fragile economy.
In the same month that Spain sought a European bailout of up to 100 billion euros for its struggling lenders, their non-performing loans rose to 9.42 percent of outstanding portfolios from 8.95 percent in May, central bank data showed on Friday.
Loans that fell into arrears increased by 8.4 billion euros ($1.03 billion) to 164.4 billion euros.
Bad loan rates have risen steadily since a decade-long property boom ended four years ago, with the country now in its second recession since 2009 and one in four Spaniards out of work.