The bad debts of households and firms fell slightly in September to 18,969 million euros, after in August exceeded the barrier of 19,000 million euros, according to data released today by the Bank of Portugal.

In September, the total of loans granted by banks amounted to 204,893 million euros, so the overdue loans of EUR 18 969 million represented 9.26% of total loans.

Despite the decline in absolute numbers of bad loans of 31 million euros in September also decreased slightly compared to August the ‘stock’ of credit to households and businesses (-0.3%), so in the figures for bad debt It fell only very lightly (9.29% in September compared to 9.29% in August).

As for credit aimed at individuals, this was in September 121 166 million (over EUR 21 million or 0.017% than in August), of which 5,358 million is the value of the considered non-performing, ie 4.42% of total. The percentage of bad debt was exactly the same registered in August.

Of total loans to individuals 99 580 million corresponded to mortgage loans, a slight increase (0.06%) from the previous month, and 2.57% (ie 2,557 million) were doubtful. Again, the relative value of doubtful loans was exactly the same in August.

But the amount borrowed by banks for household consumption reached 11,946 million euros at the end of September, the same amount in August. Given that that amount, 1,262 million corresponded to bad debts, ie 10.56% of the total, and there was a slight decline compared to August.

In the case of companies, at the end of September, loans amounted to 83,727 million euros, which makes the third consecutive month of decline.

The doubtful debt of companies increased from 13,736 million in August to 13,611 million, an improvement of 0.91%, and the percentage of bad loans remained at 16.26%.

[Source]