Debt defaults rose 203 percent in Spain between July and September and are likely to spike higher as Spanish companies run into liquidity problems during the global credit crunch, a report showed on Friday.
The number of firms that suspended debt payments in the third quarter rose to 676 from 224 a year ago, the Credit and Caution consultancy reported, citing data from Spain's Official State Bulletin.
"Credit and Caution sees an even higher increase in defaults during the fourth quarter owing to liquidity problems amid the credit crisis," the consultancy said in a statement.
The rise in defaults follows an increase in Spanish banks' non-performing loans ratio to 2.14 percent in July from 1.6 percent in June, after Spain's largest real estate firm Martinsa Fadesa filed for administration.
