Of Special Interest

Filters

[x] [x]

21st September 2012

Spanish NPA close to double figures

The Bank of Spain reported 9.9% of banking sector loans in arrears for August, up 0.5% on July. The value of bad debts was estimated as €169.3bn (£135.9bn $220.1bn ¥17,319bn Y1,389bn).


Next week the latest round of stress tests of Spanish banks will be announced. This will lead to more state aid for some banks. Spain has always wanted the banking rescue to be financed directly from the ECB and to avoid an overall sovereign loan. Given the level of bad debt within the banking sector combined with unemployment rates approaching one quarter of all adult seeking work a sovereign rescue would appear difficult to avoid.

Connected Links

Source:

News and market sources

Groups

Regions