The “Sareb effect” makes defaulting rebound.

The default of credits awarded by Spanish banks to homes and companies increased again in March up to 10,47%, after decreasing in February as a result of the transfer of toxic assets to Sareb or bad bank.

The total amount of doubtful credits has reached 163.257 million Euros, staying near the levels registered prior to the rescue of banks, in spite of having an increase of around 1200 million Euros in reference to February, according to data published by the Bank of Spain. Nevertheless, this figure has increased by 15289 million Euros since last year.

In spite of the stabilization, the defaulting in banks in March establishes a gap of 1,25 percentage points regarding the maximum level of the previous crisis, in February 1994, when it was established at 9,15%. It also increases by 2,1 percentage points over the level reached in March 2012 (8,3%).

In the last few months, the increase of defaulting had slowed down, although this non payment rate reached an historical record in November, with a default rate of 11,38%.

The analysts consulted by Efe and Europa Press rule out that the number of clients that fail to pay their loans will be reduced in the next few months. It will rather be stabilized or it will grow at a more moderate pace than until now. The facts stressed by all experts as being the cause for this behavior are the effect of the deleveraging Spanish families and companies are carrying out, and on the other side, the consequences of the deterioration of the economy and the unemployment, due to the lack of credit among other reasons.

In any case, in view of the deterioration of the portfolio of loans, the financial institutions have raised their financial cushion against losses due to the requirements of the last measures to restructure the financial sector and their own will, for an amount of 114.887 million Euros.

This movement is practically similar to the one carried out on the previous month when it was established at 114479 million Euros. It nevertheless represents an increase in the value corrections due to the deterioration of credits of 33,1% .