Spanish bad loans hit fresh high in August

Reuters

Spanish banks' bad loans rose to 10.5 percent of their outstanding portfolios in August, reaching a fresh record high, Bank of Spain data showed on Thursday, up from 9.9 percent a month earlier.

Loans that fell into arrears increased by 5.3 billion euros ($7 billion) from July, reaching 178 billion euros in August.

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Non-performing loans on the books of the country's crippled banks have risen steadily since a decade-long property boom ended four years ago, with the country now in its second recession since 2009 and one in four Spaniards out of work. ($1 = 0.7621 euros)

(Reporting By Manuel Maria Ruiz; Writing by Tracy Rucinski; Editing by Paul Day)