The percentage of bad loans on Spanish banks’ balance sheets rose to 8.16 per cent in February according to the Bank of Spain, its highest level since 1994.
That datapoint is worrisome to investors already troubled by Spanish banks’ large investments in government bonds and high use of funding from the European Central Bank.
This comes on the heels of a mounting number of reports that experts now believe some kind of large-scale bank bailout is inevitable, and that the government will probably have to ask for money from international lenders—EU countries, the ECB, or potentially even the IMF.
So far, the IBEX is off nearly 3.5 per cent today.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.