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Spanish Mortgages & Bank Bad Loans Surge To Record High

Spanish Mortgages & Bank Bad Loans Surge To Record High

In September, official data showed on Monday, despite the near completion of a €41 billion euro zone – financed bailout of the battered financial sector

Risky loans, mostly linked to the collapsed property sector, climbed by 6.9 billion euros from the previous month to an unprecedented €187.8 billion ($254 billion) in September, a Bank of Spain report showed.

The bad loans rose to 12.68 percent of all credit extended by banks in Spain in September from 12.14 percent in August, representing a fourth consecutive record high.

Last year, the eurozone agreed to extend a rescue loan of up to €100 billion to shore up the balance sheets of Spain’s banks, swamped in bad loans since a property bubble imploded in 2008 plunging the country into a recession.

Spain, the eurozone’s fourth-largest economy, has drawn €41.3 billion from the rescue loan.

Despite the persistently high level of bad loans, Prime Minister Mariano Rajoy’s government last week said it would exit the eurozone-funded banking bailout in January.

Economy Minister Luis de Guindos said in Brussels that Spain would not request fallback assistance from the European Stability Mechanism, a rescue fund set up to provide a safety net for heavily-indebted governments.

While applauding Spain’s decision for the signal sent to markets, eurozone finance ministers called on Madrid to push forward with reforms to address the country’s economic challenges, budget shortfalls, high debt, and mass unemployment.

European Union chiefs said Spain’s draft 2014 spending plans placed it “at risk of non-compliance” with its deficit-cutting targets. Spain has agreed to respect EU-norms by reducing the deficit to less than three percent of total economic output by 2016.

Spain suffered a double-dip recession after the 2008 property collapse, emerging gingerly from the last downturn with 0.1-percent economic growth in the third quarter.

Economists warn of threats to its economic recovery, however, and say that the unemployment rate — running at 26 percent in the third quarter of 2013 — will remain painfully high for years to come. AFP (news@thelocal.es) FFA Comments Spanish mortgages & Bank Bad Loans surge to record high! This is obviously still causing major problems for a large number of Spanish mortgage banks which is making the whole economy very sluggish. But this isn’t the case for all of Spain’s banks and there are a number, albeit small, that have not needed government bailouts or had to use all their financial reserves to balance their books who are generally still lending fairly normally. These banks that are still out there lending to new clients I believe will take a large share of the market as they are the ones who are capturing new business and generating some movement in the economy.

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      "DATA PROTECTION: In compliance with GDPR (EU) 2016/679 of the European Parliament and of the Council of April 27, 2016 and LO 3/2018 of December 5 on the Protection of Personal Data and Guarantee of Digital Rights, We inform you that the data provided by you will be processed by FLUENT FINANCE ABROAD SL with CIF B93504918 and address at AVENIDA MARQUÉS DEL DUERO Nº 76, PUERTA 3C, SAN PEDRO ALCANTARA, 29670 (MALAGA) in order to attend to your information request. The legal basis for the processing of your data is the consent given for the sending of information. The data provided will be kept as long as the contractual relationship is maintained or during the years necessary to comply with legal obligations. The data will not be transferred to third parties except in cases where there is a legal obligation. You can exercise your rights of access, rectification, limitation of treatment, portability, opposition to the treatment and deletion of your data by writing to the postal address mentioned above or electronic info@fluentfinanceabroad.com, attaching a copy of the DNI in both cases, as well as the right to file a claim with the Control Authority (aepd.es).