EU debt crisis: Spanish banks hit record bad debt level

The Spanish government has announced that the level of bad loans held by the country's banks is at an 18-year high.

The news comes as 16 Spanish banks - including Santander - saw their credit ratings downgraded by leading credit ratings agency Moody's.

Some people have moved their money to new accounts from some of the affected banks - particularly from Bankia, which was nationalised last week.

Gavin Hewitt reports from Madrid.