MADRID (AP) — Spain’s central bank says the level of bad debt in the country’s banks dropped to 10.4 percent in December 2012 from 11.38 percent a month earlier due to the transfer of toxic assets to the country’s new bad bank.

The bank released data Monday showing non-performing loans totaled €167.48 billion ($223.17 billion) in December, down from €191.63 billion the previous month — the first reduction in 17 months.