Tuesday, September 20, 2011
Spanish banks can’t go on like this
La morosidad del sector inmobiliario con la banca alcanza un rÃ©cord con un 17,7% Late payment of real estate to banking to reach a record 17.7%
More than three years after the bursting of the housing bubble, banks have yet to digest the glut of building that was in the boom years. In fact, instead of improving, assets linked to this sector are deteriorating by leaps and bounds. As reported today by the Bank of Spain, delinquencies in the housing sector have risen in the second quarter by more than two percentage points to 17.8% of total mortgage debt. Widening the focus, loans more than three months in arrears have increased again in July for the fifth consecutive month. Arrears rose from 5.48% to 6.93% in June compared to the same month in 2010, which in money equals a total of 124,700 million euros.