MADRID, June 19 | Wed Jun 19, 2013 6:16am EDT
MADRID, June 19 (Reuters) - Non performing loans at Spanish banks are set to increase further in the coming months as a difficult economic outlook weighs on the capacity of households and companies to repay debts, the International Monetary Fund said on Wednesday.
"NPLs typically are lagging indicators. I wouldn't be surprised if they would continue to increase in the medium term," James Daniel, the head of the IMF mission in Spain, said at a news conference following the release of the fund's annual assessment of the Spanish economy.
Spanish banks' bad loans as a percentage of total credit rose to 10.9 percent in April from 10.5 percent in March, Bank of Spain data showed on Tuesday.
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