In late September, there is a total of 636,578 families who could not meet their commitments with credits.

In the third quarter of this year, 23 512 families no longer have credits undocumented. This figure, based on data published yesterday by the Bank of Portugal (BoP) in the Central Credit Register, is the largest quarterly fall in the last two years. More. The total failure of debtors with their credits, among families, fell to 636,578, which corresponds to the lowest level in five years, dating back to previous values ​​to the bailout in 2011.

The data released yesterday by the organization led by Carlos Costa will meet the downward trend of impairments and deceleration of new entries in default already marked by major financial institutions during the third quarter results shows.
The 23,500 Portuguese households who have left the default in the third quarter, representing the highest number since September 2013 saw an exit of 26,287, a figure which remains the highest in the bop of the historical dating back to 2009. The decrease in the number of non-performing debtors affected all categories of funding.

Housing, 2,674 families no longer have their credits undocumented in late September, continuing a trend that was already observed in the second quarter. The latest bop figures indicate that there are now 149,000 households with loan installments overdue for housing.
Was mainly in consumer credit was observed that the greatest reduction in the number of non-performing debtors. Between July and September, this loan category 19 217 families no longer in that situation. Besides being the largest reduction the past two years, still puts the total number of non-performing debtors in this type of financing in minimum June 2010. In late September, there was a total of 572,143 loans for consumption and other purposes in situation irregular. Please note that the overdue loans ratio in this segment fell for the first time, to settle at 14.8%, slightly below the record high in the second quarter of 2015 (14.9%).

Filipe Garcia, economist at IMF explains that the economic and financial environment for families on average improved slightly, but points out that “there are technical aspects that may underlie this development [fall of the shortcomings] namely that in the past of lending activity was reduced and the award criteria meet more ‘tight’ or demanding. ” While considering the recent positive evolution of the shortcomings, Natalia Nunes, head of the Support Office over-indebted (GAS)? Deco also reveals some doubts about the significance of the reduction of the shortcomings. “The housing loans is an indicator that many like to look to see if the economic situation of families is improving, but the decrease of non-compliance there is relatively small,” he explains. Natalia Nunes also points out that the number of over-indebted for aid who came to his office remain at levels close to 2012, adding that one of the main factors that have helped families to not get in trouble is the decline in unemployment, “but at the expense of the increase in precarious employment and term contracts with minimum wages. ” “Most of the families have not restructuring capacity of their situation,” he argues.

Filipe Garcia also has some doubts regarding the future evolution of credit. “I believe that in the coming months continue to register a decrease, but in a while we have again increased in absolute terms due to the natural defaults on loans granted, most recently as the concession activity accelerated in recent months. In relative terms, however, the ratios show an increase over time, reflecting the memory effect still pending, “explains economist.

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