Spain banks' Aug bad debts ratio highest in 17 years

MADRID: Bad debt as a percentage of total debt at Spanish banks rose to 7.2 percent in August, its highest level in 17 years, Bank of Spain data showed on Tuesday.

Loans that had fallen into arrears rose by 3.2 billion euros to 127.7 billion euros ($176 billion) during the month.

The percentage of bad loans to total lending was its highest level since November 1994.

The highest unemployment rate in Europe, coupled with sluggish economic growth and the end of a housing and construction boom, has driven up the level of unrecoverable debts in Spain.