Spain Banks’ Bad Loans Rise To 7.9%

Spanish banks’ bad loans rose to 7.9 percent of their outstanding portfolios in January, up from 7.61 percent, and the highest since August 1994, Bank of Spain data showed on Tuesday.

Loans that fell into arrears increased by €4.2 billion to €140 billion in January.

Outstanding debt have continued to climb as the country slides back into recession and the economy is held back by the highest unemployment rate in the European Union, Reuters reported.