The Pain In Spain Is Mainly... Everywhere

Submitted by Tyler Durden on 12/10/2013 


Bad Debts at Record High




Record bad loans may restrain the economic recovery. Spanish banks’ bad debt as a proportion of total lending rose to a record 12.68 percent in September, according to Bank of Spain data that began in 1962. Missed payments on mortgages are rising and defaults as a proportion of total mortgages jumped to 5.2 percent in the second quarter from 3.2 percent a year earlier.

House Prices May Fall Further

Banks are likely to remain under pressure as real estate values fall. House prices are down 28.2 percent from their peak. Fewer than 15,000 mortgages were granted in September, compared with about 129,000 at the September 2005 peak, according to the National Statistics Institute, pointing to more price declines. House prices may drop a further 13 percent by the end of 2014, S&P forecasts.

Articulo completo:

http://www.zerohedge.com/news/2013-12-10/pain-spain-mainly-everywhere