MADRID, June 19 Non performing loans at Spanish
banks are set to increase further in the coming months as a
difficult economic outlook weighs on the capacity of households
and companies to repay debts, the International Monetary Fund
said on Wednesday.
"NPLs typically are lagging indicators. I wouldn't be
surprised if they would continue to increase in the medium
term," James Daniel, the head of the IMF mission in Spain, said
at a news conference following the release of the fund's annual
assessment of the Spanish economy.
Spanish banks' bad loans as a percentage of total credit
rose to 10.9 percent in April from 10.5 percent in March, Bank
of Spain data showed on Tuesday.