PRESSURE RISING: The amount of bad debt in Spain’s banks rose to a record €170 billion ($221 billion) in July, according to data released Tuesday, as the country came under further pressure to take up the European Central Bank’s offer to help governments struggling with too much debt by buying unlimited amounts of bonds.
THE BACKGROUND: Many of Spain’s banks are loaded with soured real estate investments following the collapse of the country’s property market in 2008. The 16 other countries that use the euro last month agreed to provide Spain with up to €100 billion to help support these banks.
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THE OUTLOOK: Spain has been under pressure to seek help. The recession-hit country’s borrowing costs have fallen from unsustainable highs in recent months after it said it may apply for international aid — if the conditions are reasonable.
