Spanish Banks Selling Debt Servicers as Funds Circle

Spanish Banks Selling Debt Servicers as Funds Circle

Angel Navarrete/Bloomberg

New residential apartment blocks are reflected in a puddle on a street in Sesena, near Madrid. Buyers of Spanish real estate are finding it harder to repay loans as the country’s unemployment rate hits 26 percent, driving bad loans as a proportion of total lending in the banking system to 10.4 percent.