It seems that the unemployed and the failing companies have difficulty paying their bills. But austerity is totally working.
Figures released Monday by the central bank show non-performing loans totaled 176.4 billion euros ($235.3 billion) in June, up from 170.21 billion euros in May.
The ratio has soared from 1 percent in 2007, a year before Spain's property market collapsed, ushering in a crisis. Spain has been in recession for most of the past four years and has a 26.3 percent unemployment rate.
The government claims its austerity measures and reforms are working and predicts the recession will end this year, but international experts are less optimistic.
Spanish banks' bad loan ratio edges higher [AP via Yahoo! Finance]