Spain's Bad Loan Ratio Hits Highest Level in 14 Years
December 18 2010
Source : The China Post
MADRID -- Spain's central bank says the bad loans ratio for the country's banks and financial institutions rose to 5.66 percent in October, its highest in 14 years.
The bank said Friday said that of total loans of 1.83 trillion euros (US$2.42 trillion), bad debts accounted for 103.7 billion euros in October, up from 101.3 billion euros in September.
Spain's shaky banking sector is a key factor in Europe's effort to keep its government debt crisis from spreading. Greece and Ireland have already needed bailouts, with heavy banking losses helping push Ireland into needing a rescue.
Spanish banks have been saddled with foreclosed property since the collapse of the key real estate sector.
Moody's ratings agency this week said it was maintaining its negative outlook for Spanish banks and would review the country's debt rating for possible downgrade.