The weight of risky loans on the balance sheets of Spanish banks continues to increase. Fears are growing that the debt crisis in Greece, Ireland and Portugal could also infect the Iberian country. In Spain's banks, the ratio of non-performing loans (hard to recover) reached around 6,5% in May, a new 16-year record for a total of 117,59 billion euros.
These are the latest data from the Bank of Spain, which recalls that in April the share of potentially insolvent debtors was 6,36%, for a total of 115,35 billion euros. Mortgages are the item that weighs the most. In fact, during the boom years many were granted, without too many guarantees and at very low rates. With the global crisis the real estate bubble burst and the real estate sector started to suffer.
