| Spanish non-performing loan rate sets new record |
| Last Updated(Beijing Time):2012-08-18 06:03 |
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The Spanish banks' non-performing loan reached 9.42 percent in June 2012, representing a new record since 1994, according to data released on Friday by the Bank of Spain.
Total non-performing loans have reached 164.361 billion euros. In percentage terms, non-performing loans stood at 8.96 percent in May and it has been on a constant rise over the last year.
The non-performing loans was only 6.69 percent in June last year.
This has pointed to a lack of solvency and liquidity in the Spanish banking system which forced the Spanish government to ask for a bailout to the European Union (EU).
The EU has offered an amount of up to 100 billion euros to recapitalize the Spanish banks. In addition, Spain is expected to ask for a second bailout in September due to the difficulties that the country has to get funding from the market.. |
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