Spanish banks’ bad debts hit new high

<p>Spain’s banks’ bad debts hit fresh highs in September.</p>

The Ibex index in Madrid has climbed today (November 19th) after it was revealed Spain's banks' bad debts hit new highs in September.

These debts are mostly loans to property buyers and developers and have accumulated as the collapse of the embattled Iberian nation's housing bubble continues to hurt the economy.

According to central bank data, bad debts reached €182 billion (£146 billion) or 10.7 per cent of bank assets.

Spain's government announced last week that it will be suspending evictions for the most vulnerable people for two years in a bid to protect those who need the most support.

Nevertheless, the nation appears unchanged in its persistence in dealing with its debts without a formal bailout from international lenders after the European Union lined up a €100 billion rescue find for Spain's banks earlier this year – although Madrid is yet to use this money.

At 11:55 GMT today, the Madrid Ibex advanced by 0.8 per cent to an index value of 7655.1 points.

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