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Spanish loan defaults have surged to their highest levels since September 1995, according to Cotizalia.6.19% of all loans in Spain were in default as of February. That’s a 0.13% rise over January, and a 0.81% increase over February 2010’s number.
This data comes before the ECB increased rates in April, which suggests further pressure on debtors who’s loans are variable interest, based upon the central bank’s lending rate. That’s 85% of all mortgages in Spain.
So while this problem is already getting worse, it could be about to accelerate as a result of the ECB’s tightening cycle.