Company borrowing in November at highest level since June 2018

Total loans to companies rose to 72.0551 billion euros at the end of November, 100 million euros more than in October and the highest figure since June 2018, according to Bank of Portugal figures.

In November 2020, according to the Bank of Portugal (BoP), the loans to companies exceeded the 71.9551 billion euros recorded in October and the 68.153 billion euros recorded in November 2019.

The central bank’s figures also show that bad loans to companies in November last year stood at 3.8% for the previous month and below the 5.2% of November 2019.

According to the Bank of Portugal, 16.8% of companies had overdue loans in November, a lower proportion than in October (17.3%) and the same month in 2019 (18.8%).

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