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Spanish banks' bad loans hit record 12.7 pct

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November 18, 2013 05:44 AM EST | AP


MADRID (AP) — The bad loan ratio of Spanish banks has hit a record 12.7 percent with repayments still a major problem in a country technically out of recession but still suffering mass unemployment.

The Bank of Spain said Monday that non-performing loans in September jumped for the seventh straight month to 187.8 billion euros ($252.8 billion) from 180.9 billion in August when the ratio stood at 12.1 percent.

The ratio increase was also due to the fact that the total loan pool has been shrinking. In September it stood at 1.5 trillion euros, down 8.9 billion euros from August.

Spain's bad loan ratio was 1 percent in 2007 when the crisis began.

Figures last week confirmed that Spain's two-year recession has come to an end. However, unemployment remains high at 26.3 percent.