Edition 1479
16 June 2018
Edition: 1479

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Borrowing ratios among highest in Europe - Bank of Portugal

by TPN/Lusa, in News · 07-06-2018 08:15:00 · 0 Comments

The Bank of Portugal (BdP) said on Wednesday that the borrowing ratios of companies and families are still among the highest in Europe at a time of low potential growth.

Borrowing ratios among highest in Europe - Bank of Portugal

 

In the case of individuals it said there had been “strong growth” in consumer credit and new mortgage operations showing there were fewer restrictions on granting credit.

 

The central bank said the Portuguese banking system continued to have “vulnerabilities” with levels of return remaining low despite having increased somewhat, the level of non-performing loans was still “significant” and the high exposure to government debt and real-estate made the sector particularly sensitive to unfavourable changes in the prices of these assets.

 

"The economic recovery and low interest rates mitigated some of the risks associated with the short-term loans", it added.

 

Even so, the Bank of Portugal stressed the progress that had been made in reducing the borrowing ratios and positive developments in the banking sector that had made the Portuguese economy more resilient to risks to the financial stability.

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Edition 1479
16 June 2018
Edition: 1479

Read this week's issue online exactly as it appears in print.

Twitter