Late Payments in Spain Soar to 7.14%, Highest Since 1994; Portugal Economy Expected to Contract More than Forecast in 2012

Courtesy of Google translate, please consider Late payment of the financial system up to 7.14% in August, highest since 1994
Defaults on loans granted by banks, savings banks, cooperatives and credit institutions (EFC) to individuals and companies in August stood at 7.14%. This is the highest level since November 1994, according to the Bank of Spain.

According to the provisions of Bulletin Gesif Axesor tracking delinquencies and entrepreneurship, the default rate of banks in Spain will end the year 2011 about 8% as it will keep the upward trend in the last months of the year.

With the default rate on the rise and persistence of the difficulties of access to credit would not be surprising that the ratio of non-compliance continued growth path of 9%, predicts the newsletter.
Portugal forecasts economy to contract 2.8% in 2012

Yahoo!News reports Portugal forecasts economy to contract 2.8% in 2012
Portugal's economy is next year expected to shrink further than was previously forecast, the government said Monday as it submitted its tough 2012 budget, while unions responded with a strike call.

Finance Minister Vitor Gaspar told a press conference that Portugal was "at the heart of the crisis" affecting the eurozone and that the floundering world economy "will lead to a contraction of gross domestic product of 2.8 percent, following 1.9 percent this year," in Portugal.

The government had previously envisaged the economy would shrink by 2.3 percent in 2012 and 1.8 percent this year. The Bank of Portugal had put the estimates at 2.2 percent and 1.9 percent, respectively.
Portugal 10-Year Bond Yields

Spain 10-Year Bond Yields

Even though the ECB, EU, and IMF cannot figure out what to do about Greece, Spain is simmering and the lid has blown off Portugal.

Mike "Mish" Shedlock
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