Bank in Spain Suffered Setback over Bad Loans

Bank in Spain Suffered Setback over Bad Loans

There seems to have an increase in the total lending at Spanish banks in the month of September. This happened because most of the borrowers failed to pay their loan payments along with an unemployment rate at 26%.

The latest budget report states an increase in lending of non-performing loans to about 12.7% from 12.1% in August. The Bank of Spain said that this rate was 10.7% the previous year. Because the 6.9 billion Euros in loans were classified by default, the stock of bad loans raised to about 187.8 billion Euros.

There seems to have some positive signs in the economy of banks after a slump of five years. But, the Banks in Spain is still facing difficulties in controlling the quality of their assets. It has been predicted by the International Monetary Fund that an unemployment rate will not fall below 25% by the end of 2018.

The assets are being reviewed by the bank of Spain to ensure refinancing of loans. These assets are also being reviewed with a motive that there may be little chances of repayment of loans. The official data revealed that a major setback has been suffered by the banks in Spain because of their bad loans in September.


FrenchTribune Specials

Extremely Small Premature Baby Surprises Everyone

Megan Smith and Eric Pegues finally took a sigh of relief after their extremely small premature baby was discharged on January 9, 2016 from a hospital in Charlotte, North Carolina. Megan, who gave birth to E’layah Faith on September 23, 2015, said that she was anxious as the moment she had been waiting for has finally arrived.

The baby...

Most Popular

CNIL asks Facebook to comply with French data protection laws or face fines

This week, social network Facebook has been ordered by...

Junior doctors in England begin second 24-hour strike

Junior doctors in England are starting another day long...

Hackers expose contact details of 20,000 FBI employees

The contact information of 20,000 employees from the...

Indian regulators block Facebook's ‘Free Basics’ service

On Monday, the Telecom Regulatory Authority of India (...

Poll

Can Greece Come out of Economic Problems: