Nonfinancial Debt hits a new record of 726.6Bn€ in May

The Portuguese economy’s indebtment rose to 729.6Bn€ last May, the Bank of Portugal revealed this Thursday. It is considered to be a new record. “In May 2019, the overall indebtment of the non-financial sector was at 729.6Bn€, 328.5Bn€ of which correspond to the public sector as 401.1Bn€ to the private sector”, the Bank of Portugal adds.

The regulator also stated that the economy’s indebtment increased 3.4Bn€ relative to April this year. This increase can be explained by the increase of 2.5Bn€ in the public sector’s debt as the debt in the private sector increased by 900M€.

The institution led by Carlos Costa said that “the increase in public debt has resulted from the increasing debt relative to both public administrations and financial institutions, to be alleviated by the decreasing debt relative to the non-resident sector”.

In May, Portugal successfully managed to obtain 1.250M€ in 10-15Y bonds in the market.

“In the private sector, companies debt have been observed to increase 500M€ to the financial sector as 300M€ to external creditors. Individuals registered an increase in debt of 100M€ to the financial sector.”

This indicator, calculated by the Bank of Portugal, includes the indebtment of companies from both the public and the private sector as well as the individual indebtment. The indicator does not, however, include the financial sector’s debt. These figures do not contemplate intersectoral balances.