Credit to companies declines in October

In September, stock of loans to companies had peaked since June 2018, standing at around 72.149 million euros.

Total loans to companies decreased to 71.963 million euros at the end of October, 185,8 million less than in September, nevertheless reaching peaks since July 2018, according to data from Banco de Portugal.

In September, the stock of loans to companies had peaked since June 2018, standing at around 72.149 million euros. The stock of 71.963 million euros of loans to companies in October exceeds the 68.953 million euros recorded in October 2019.

Central bank data also points out that, in October this year, non-performing loans in companies decreased to 3,8% of total credit, compared to 4% in September, remaining well below the 6,2% in October 2019 .

Analyzing by the total number of debtors (and not by the amounts of credit), according to Banco de Portugal, 17,4% of the companies had their loans due in October, a proportion lower than that of September (17,6%) and that of the homologous month of 2019 (18,8%).

Due to the economic crisis caused by the Covid-19 pandemic, loans to companies with state guarantees are in effect and a public moratorium on bank credits from families and companies, recently extended until September 30, 2021.


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