A Spanish flag flutters in the wind near a statue of Columbus in Madrid May 18, 2012. Spanish banks' bad loans rose in March to their highest in 18 years, underscoring the problems facing the government as it drafts in independent auditors in an attempt to reassure investors it can clean up the sector.The Bank of Spain said bad loans rose to 8.37 percent of banks' outstanding loans, the highest since August 1994 and up from 8.3 percent in February, which was also revised higher. REUTERS/Susana Vera (SPAIN - Tags: BUSINESS SOCIETY)