The Bank of Spain has said the level of bad debt in Spain's banks has risen to a record 10.7% of their loan total.
The bank said today that the amount of loans at risk of not being paid in September totalled €182 billion, up from €179 billion in August - the 15th monthly increase in a row.
Many Spanish banks are loaded with toxic property investments since the country's property market collapsed in 2008.
The 16 other countries that use the euro have agreed to lend Spain up to €100 billion to help support the banks.
Recession-hit Spain is considering applying for further aid, a petition that would allow the European Central Bank to begin buying its bonds so as to lower Spain's borrowing costs.
Spain to offer residency to foreign house buyers
Spain is to offer foreigners residency permits if they buy houses worth more than €160,000 as part of an attempt to reduce the country's bloated stock of unsold homes.
Trade Ministry secretary Jaime Garcia-Legaz said the plan, expected to be approved in the coming weeks, would be aimed principally at the Chinese and Russian markets as the domestic demand was stagnant and showed no sign of improving.
Spain has more than 700,000 unsold houses following the collapse of its property market in 2008. The country's economy is struggling and is currently in recession with 25% unemployment.
Thousands of houses have been repossessed by banks and their owners evicted because they cannot pay their mortgages. The government last week approved a decree under which evictions would be suspended for two years in specific cases of extreme need.
It was not immediately clear if the residency would only refer to Spain, and not the European Union.
