MALAGA GAZETTE

Monday, October 18, 2010

Spain's Defaults Ratio Rose to 14-Year High of 5.62% in August - Bloomberg


Monday, October 18, 2010 |


Spain's Defaults Ratio Rose to 14-Year High of 5.62% in August - Bloomberg: "Bad loans as a proportion of total credit at Spanish lenders rose to 5.62 percent in August, a 14- year high, from 5.47 percent in July as the country’s sluggish economy slowed loan repayments.
Bad loans in the industry jumped to 102.5 billion euros ($142 billion) in August from 100.5 billion euros in July and 90.9 billion euros a year ago, the Bank of Spain said on its website today. The bad loan ratio, which declined in June, was 4.94 percent a year earlier.
While some banks including Banco Bilbao Vizcaya Argentaria SA say their bad loans have peaked in Spain, others including Banco Santander SA say that won’t happen until next year. The country’s financial regulator says the industry’s “potentially troubled exposure” to property developers includes another 123 billion euros in asset foreclosures and acquisitions, write-offs and loans deemed to have a higher risk of default.
Bad loans as a proportion of total lending at commercial banks climbed to 5.49 percent in August from 5.37 percent in July, the central bank said. The bad loans ratio at savings banks rose to 5.69 percent from 5.52 percent."


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