Spain barrier

21 October 2013 By Fiona Maharg-Bravo

The country’s lenders have already set aside nearly 190 billion euros in provisions for dud loans. Even though they may still need another 45 billion euros as bad debts climb, this should be manageable. The wheels will only properly come off if Spain’s economy stagnates.

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Jeroen Dijsselbloem, president of the Eurogroup, said Spain’s banks were in better shape than its European peers. In an interview with el Pais on Oct. 21 he said, “The strengths and weaknesses of Spanish banks are well known, and the same cannot be said of other countries.”
Spanish non-performing loans rose to a record 12.1 percent to 180.7 billion euros in August, according to the latest Bank of Spain data. The country’s lenders have set aside provisions of 190 billion euros.

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