Financial Times FT.com

Fastest rise in Spanish bad debts

By Victor Mallet and Mark Mulligan in Madrid

Published: September 19 2008 03:00 | Last updated: September 19 2008 03:00

The collapse in July of Martinsa-Fadesa, a big property developer, has generated the sharpest monthly rise in bad debts at Spanish banks in more than five years, according to figures released on Thursday by the Bank of Spain.

Spain’s bad debt problem underlines the severity of the downturn facing even those economies not directly affected by the turmoil among US and UK banks.

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