It looks like the level of default credit payments in Spain may be starting to slow down. Last month the figure for defaults was 4.8% down from January’s high of 6.4%.

Unfortunately, this reduction is strongly influenced by the alarming decrease in the number of purchase agreements made, which have dropped in the last year from 12.1 million to just less that 10 million according to figures published yesterday by the National Statistics Institute (INE).

In Spain, late payment remains at the same levels as 2007, in relative terms, but with 2,125,000 less purchases. Of the total deferred purchases in June, which were ultimately unpaid, amounted to 465,000. 18.5% less compared to the same period in 2008.

The total amount of missed payments comes to 1.060 million euros, 42% lower over the same period in 2007. And the average value of the unpaid bills is 2,274 euros also decreased a significant 28.5% in annual terms and accumulated an average decrease of 8.7%.

These decreases are due primarily to drops in retail prices and new consumer habits in both households and businesses, who generally in times of crisis, choose the cheapest products.

Defaults by region show, in turn, a direct relationship between high rates of unemployment and delinquency. Canary Islands and Andalusia are the regions with the highest percentage of purchases that do not reach a deferred charge.