After the crisis of 2008-2009, Spanish consumers returned to the lending market, with a 19% increase in consumer credit over the last 12 months, in contrast to a mere 5.6% increase in mortgage loans. Spain's economy has grown twice as fast as the EU average, and the population has reached nearly 50 million. New consumer loans reached almost 4.5 billion euros in October, the highest level since 2007.
However, the risks of default are increasing, with a non-performing loan rate of over 4%. The Spanish government is preparing to cap interest rates on risky loans, amid concerns about loans with very high interest rates.
This expansion of consumer credit reflects the financial precariousness of many consumers, who are turning to high-cost borrowing options.
Sources
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