MADRID – Spaniards borrowed more money than ever last year, according to figures released Monday by the Bank of Spain.

The bank said Spaniards took out loans and mortgages totalling EUR 507.5 billion.

Borrowing rose by 17 percent in 2003, or by EUR 75,000, compared with the previous year.

It is the highest rise for seven years.

In terms of financial actions, Spaniards made EUR 1.26 billion transactions, compared with EUR 1.1 billion.

This was a 14 percent rise in comparison with 2002.

The results come after repeated warnings from the Bank of Spain which has said that Spaniards should be more cautious in the amount they borrow.

The bank said the high rate of borrowing was attributed to the low rates of interest.

And in a report released last month said each person in Spain borrowed an average of EUR 18,653 last year.

Most Spaniards borrow cash for mortgages as the rush to find affordable housing continues, analysts have said.

The Socialist government has promised to build 180,000 affordable homes in an effort to stem the level of borrowing.

[Copyright EFE with Expatica]

                                        Subject: Spanish news