Spanish banks 'struggling to cope' with real estate losses

Falling property values and rising numbers of foreclosures in Spain are among the factors putting pressure on the country's financial system.

Speaking to Time World, Santiago Nino Becerra, an economist at the University of Ramon Llull, explained that Spain's mortgage market is comparatively small compared to other nations, such as the US.

"With housing values dropping, the banks here simply can't withstand those kinds of losses," he stated.

Mr Nino Bercerra went on to add that because unemployment in Spain is continuing to rise, "when it comes to foreclosures, we're going to see some unbearable statistics".

The country's financial institutions have been under the spotlight of late, due to the economic difficulties being experienced by several members of the European Union - most notably Greece.

Meanwhile, after three major Spanish financial establishments - Caixabank, Bankinter and Popular - published their first half 2011 results today (July 22nd), banks analyst at Nomura in London Daragh Quinn told Reuters that the figures were better than expected.
 

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