Spanish banks' bad loan ratio almost 12 percent

AP News
|
Posted: Sep 18, 2013 7:09 AM

MADRID (AP) — The bad loan rate for Spanish banks has reached a record of 11.97 percent as the recession forces more companies and individuals to dodge repayments.

Central bank data released Wednesday shows non-performing loans totaled 178.7 billion euros ($238.6 billion) in July, up from 176.4 billion euros in June when the rate was 11.6 percent.

It was the fifth consecutive monthly increase.

The ratio has soared from 1 percent in 2007, a year before Spain's property market collapsed. Spain has been in recession for most of the past four years and has a 26.3 percent unemployment rate.

Recommended
What Does Female Empowerment Mean?
Dennis Prager

The government says its reforms are producing results and predicts the recession will end this year but international experts are less optimistic.