Spain's bad-debt ratio up to record 10.7 percent
- Associated Press
- November 19, 2012 - 4:45 AM
MADRID - The Bank of Spain says the level of bad debt in the country's banks has risen to a record 10.7 percent of their loan total.
The bank said Monday the amount of loans at risk of not being paid in September totaled (EURO)182 billion, up from (EURO)179 billion in August — the 15th monthly increase in a row.
Many Spanish banks are loaded with toxic real estate investments since the country's property market collapsed in 2008. The 16 other countries that use the euro have agreed to lend Spain up to (EURO)100 billion to help support these banks.
Recession-hit Spain is considering applying for further aid, a petition that would allow the European Central Bank to begin buying its bonds so as to lower Spain's borrowing costs.
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