Bad debts held by Spanish banks reach 169bn Euros or 10% of total loans
The value of bad debts held by Spain's banks in July rose to 169.3bn Euros, according to latest figures from the central bank. The Bank of Spain said 9.9% of banks' total loans were in arrears, up from 9.4% a month before.
It was the highest bad loan ratio since the central bank began compiling the data in 1962. Spain is assessing the conditions of assistance from the European Central Bank, its deputy prime minister said.
According to Bloomberg Deputy Prime Minister Soraya Saenz de Santamaria told Spanish television that a rescue may be an option, “if we get our borrowing costs to fall, so we pay less, and if we manage to do that by doing reforms and without new sacrifices”.
ECB governing council member Luc Coene reiterated on Monday that Spain must “submit to [the] conditionality”, before it can buy up its bonds. He warned that if it does not, “I don't think it will take long for Spanish spreads to rise”.
Fears that Spain will delay asking the European Central Bank to intervene on its behalf in the bond market caused the yield, or interest rate, on the country's 10-year bonds to rise above 6% again on international markets on Tuesday, although it fell back later.
But Spain did succeed in raising 4.6bn Euros in 12- and 18-month loans on the bond markets on Tuesday, and at lower interest rates than recent auctions. The rates on the 18-month debt, for example, fell to 3% from the 3.3% it had to pay to borrow over the same time period a month earlier.
Analysts suggest an auction of longer-term debt later in the week will be a better test of confidence.
Spanish banks' bad debts have risen steadily since the property bubble burst four years ago and the country fell into recession.
Almost a quarter of Spaniards are now out of work, and many analysts believe Spain is inching closer towards seeking a full financial bailout.
The results of a final stress test on Spain's banks are due to be published on 28 September, and will provide a basis for calculations as to which banks should receive European Union funds and how much they should get. (BBC).-
Suggested Stories
-
May 18th 2013
Chile confirms its commitment to the cruise industry at the Convention in Valaparaiso
-
May 17th 2013
Chile anticipates mild slowdown after years of strong growth
-
May 17th 2013
Argentina’s ‘autarkic project’ worsens bilateral relations and multiplies problems
-
May 17th 2013
Argentine whitewash bill turning into ugly electoral debate
13 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
yes quite agree .
Not going to happen for 2 main reasons:
1) They already figured out that those TBTF (To Big To Fail) are “zombie” banks/giant blackholes.
2) Why should you help your competition.
“Deputy PM Soraya Saenz de Santamaria: rescue or no rescue, that is the question ”
Deputy PM soraya Saenz de Santamaria knows that they shouldn't and cannot be rescued, but must rescue them on the cost of people (austerity measures) because that's what she (and her friends in the club) are being told to do by the Troika (EU, IMF, Germany). Bail out your banks..ups i mean, bail out “Spain” so they can pay the other zombie banks in Germany, France and many more “bondholders”.
“Austerity isn't working”
No it doesn't, sadly the hard working people and those loud mouths who follow their leaders blindly, haven't figured that out yet. There is still to much bread and circus on tv.
“Btw nice picture ”
Yeah, she looks very “friendly” and “clueless”.
“you cant have em both.”
Ofcourse you can, everything is possible, even the impossible.
Of course you can, everything is possible, even the impossible
[True, very true ]
We think Germany is regretting very badly, bailing everybody out,
In the end, they will be ok, and Germany may well end up broke,
But is the alternative all worth it,
A federal Europe, run by faceless autocrats ,In effect one nation,
It just wont work,
.
Can we say UK is finished ?
A federal Europe, run by faceless autocrats ,In effect one nation,
That's exactly what the German (more the elite) wants..control.. but at the end you are correct, it just won't work at the end. Some know, but don't care.
“Can we say UK is finished ?”
Yes, though that's old news..solution? Trick your people (peasants) that WAR is necessary.
When they (the elite) are in trouble, they take you to war. the poor, the burned out, the frustrated will believe the propaganda and who deares to think for him or her self and question them (the elite), will be silenced.
Yes, though that's old news..solution? Trick your people (peasants) that WAR is necessary.
[you may well be correct]
its definetly comming,
but who will start it first,
it seems that large parts of the world are queing up for war,
china , Iran , israel , afgan , pakistan , yemen , somalia ,
and who will suffer,
innocents innocent .
You are the renegade from the Netherlands if I remember correctly.
'Peasants' we are, dildo are you, message you need, the dark side you are.
Yoda you are not.
Makes as much sense as your drivel ever does! May the dark side be with you.
make love not war.!
[you cannot have, what is not yours]
...............
yet wars are so easy to start,
[its mine and i want it]
greed ,,when will we ever learn..
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!