Non-performing loan rate up

Non-performing loan rate up
Non-performing loan rate up

SPAIN’S non-performing loan rate stood at 8.47 per cent in July as opposed to the 8.43 per cent of a month earlier, the Bank of Spain reported on Tuesday.

A non-performing loan is the sum of borrowed money upon which the debtor has not made their scheduled payments for at least 90 days. A nonperforming loan is either in default or close to being in default. Once a loan is non-performing, the odds that it will be repaid in full are considered to be substantially lower.

According to the Bank of Spain data, banks, saving banks, cooperatives and credit finance entities had €106.34 billion of non-performing loans up to July, which was above the €106.196 billion they had until June. Spain’s total credit portfolio stood at €1.25 trillion.

Spain’s non-performing loan ratio peaked in December 2013, when it reached 13.61 per cent with a total of €197.04 billion of bad debt as a result of the country’s financial crisis, real estate sector debt and high unemployment.

Transfers of toxic assets to the Spanish “bad bank” (SAREB) helped to reduce the country’s amount of bad debt in the Spanish banking system in 2012, but the country still struggles with the consequences of the financial and real estate sector crisis.

© No part of this web site may be reproduced without written permission from the publishers. All rights reserved. Todos los derechos reservados.


Please enter your comment!
Please enter your name here