MADRID - Non-performing loans within the Spanish banking sector reached 155.84 billion euros ($192 billion) in May, or 8.95 percent of total loans, the Bank of Spain said Wednesday.

The rate of non-performing loans is close to the historical high of 9.15 percent recorded in 1994, when the Spanish economy was suffering a deep recession.

Latest statistics from the central bank showed that total Spanish bank loans dropped by 42 billion euros while non-performing loans increased by 16 billions euros in May.

The European Union (EU) has earlier agreed to rescue Spain's ailing banking sector by providing up to 100 billion euros in a bid to soothe a nervous global market.

The first 30 billion euros will be delivered in July and the remaining will be provided in three batches.

Despite the EU lifeline, it is widely believed that the Spanish banking sector will continue to face harsh situations in coming months amid rising unemployment and a possible burst of the real estate bubble.