MADRID Dec 18 Spanish banks' bad loans reached
a new high in October, fuelling concerns about the health of its
banking sector despite an injection of emergency cash from the
European Union that could reach 41 billion euros.
Data from the Bank of Spain released on Tuesday showed that
loans that fell into arrears rose to 189.6 billion euros in
October, or 11.2 percent of outstanding portfolios.
They increased by 7.4 billion euros ($9.7 billion) from
September, when the rate was 10.7 percent.
Non-performing loans on the books of the country's ailing
banks have risen steadily since a decade-long property boom
ended four years ago, with the country in its second recession
since 2009 and one in four Spaniards out of work.
Analysts expect bad loans to keep rising in coming months,
with a stronger impact on the banks' balance sheets.
"We will see an impact from new unemployed people from the
public sector," said Daniel Pingarron, from IG Markets