Photo: Wikimedia Commons
New figures out from the Bank of Spain show both public debt and bad loans from Spanish banks soared during the first quarter of 2011 (via El Periodico and the AFP).Spanish debt rose to €679.78 billion, or 63.8% of GDP at the end of March. EU countries are supposed to have their debt-to-GDP ratio at under 60%.
Spain’s private sector had a poor first quarter as well. Late payments on debt held by Spanish banks rose to 6.35% in April, the highest level since 1995 according to El Periodico. This is an increase from a 6.11% ratio of bad loans in March.
These numbers come out as Spain prepares to inject 7 billion into the “cajas”, the cash-strapped banks that requested aid from the state.
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