Spanish bad bank loans soared to a fresh high in June, with almost 10percent of households and companies now behind on their payments.

by Szu Ping Chan

Bad debts climbed to 9.42pc of total lending, the Bank of Spain said on Friday, the highest since records began in 1962.

The data showed that €164.4bn of loans were more than three months past their repayment deadlines.A month earlier, the bad loan rate was 8.96pc.

Deposits of households and companies fell 6.59pc from a year earlier, the regulator said.

The Spanish government has come under market pressure to seek a full scale international rescue after agreeing a €100bn bail-out to recapitalise its battered banking sector.

Continue Reading at…