SPAIN: BANKS’ BAD DEBTS RISE TO 5.39% OF THE TOTAL
In May, Spanish banks’ bad debts were still 5.39% of the total. The figures were disclosed by the Bank of Spain, only a few days before the publication of the performance of the major European banks. The Spanish banks’ bad debts, which have comprehensively risen by 467 million compared to April, have grown to 5.5% of the total, including credit card debts, while the bad debts of private banks have risen to 5.42% of the total against the 5.40% recorded in April, while they dropped from 5.52% to 5.51% of the total in savings banks. There is great concern for the debts held by Spanish mutual savings banks because of their great exposure in the real-estate sector, even if the Association of Spanish Mutual Savings Banks assures that they are not expecting bad surprises from the stress tests.