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EU debt crisis: Spanish banks hit record bad debt level

The Spanish government has announced that the level of bad loans held by the country's banks is at an 18-year high.

The news comes as 16 Spanish banks - including Santander - saw their credit ratings downgraded by leading credit ratings agency Moody's.

Some people have moved their money to new accounts from some of the affected banks - particularly from Bankia, which was nationalised last week.

Gavin Hewitt reports from Madrid.

  • 18 May 2012
  • From the section Europe
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