The 'stock' of non-performing loans (NPLs) in Spain rose to 83.1 billion euros in the second quarter of this year, its highest value since 2019, according to data from the latest NPL report from Prime Yield, a Gloval group firm specialized in the valuation of real estate assets and loans for investment funds and banks.
In this sense, it should be noted that Spain had the second largest portfolio of non-performing loans in Europe between April and June 2021, 19% of the total, only behind France, according to data from the European Banking Authority (EBA, for its acronym in English).
"During this year, non-performing loans seem to have stopped the downward trend that had been registered in recent years and that was accentuated as a result of the impact of the coronavirus pandemic," says Prime Yield.
Regarding the exposure of households, NPLs represented 53.9% of aggregate delinquency in our country during the second quarter of 2021, that is, 44.8 billion euros (+ 2% compared to the same period last year) .
Looking ahead to 2022, the NPL market in Spain could reach 102,000 million euros, 22.7% more, with various non-performing loans of SMEs that are expected to hit the market in the coming months.
On the other hand, in the transactional area, Prime Yield expects an increase in sales volume by the end of 2021, which will be between 11,500 million euros and 12,000 million.
Nelson Rêgo, ‘Managing Director’ of Prime Yield, has assured that “the transactional activity of bad debts will increase significantly”. “Financial institutions are selling their inherited 'stock' of bad debts, allowing them to continue reducing bad debts in anticipation of a possible new wave of bad debt that may arise in the next two years as a result of defaults and the worsening of debts. economic prospects, "he concluded.