Public debt in Spain reached a record high in June. The Banco de Espana (Bank of Spain) said the figure has risen to 942.8 billion euros ($US1.3 trillion), equal to 92.2% of the country's entire economic output.
This is nearly 15% higher than the same period last year and above the government's target limit of 91.4%, despite severe public spending cuts.
Austerity measures have led to street protests as unemployment now tops 26%. The government of Prime Minister Mariano Rajoy is aiming to reduce public spending by 150 billion euros between 2012 - 2014.
The bank believes public debt could top 100% of gross domestic product over the next three years, its highest level in more than a century.
However, the BBC reports borrowing by banks from the European Central Bank is reducing.
Spanish banks borrowed 249.3 billion euros from the ECB in August, the 12th successive month their borrowing has fallen.
In August 2012, a record 411 billion euros was borrowed from the ECB. The banks received 41 billion euros of in bail-out funding from the EU in 2012.
