Family, company, state borrowing up €4B to €757.5D in May

The debt of households, businesses and the state rose by €4 billion in May compared to the previous month, to €757.5 billion, the Banco de Portugal (BoP) said on Tuesday.

In a statement, the BdP said that this rise in non-financial sector debt was due to increases of €2.5 billion in public-sector debt and €1.5 billion in private-sector debt.

Of the non-financial sector debt in May, €346.4 billion was from the public sector and €411.1 billion from the private sector, the central bank said.

“The rise in public sector borrowing resulted mainly from increases recorded in loans to the financial sector (€1.5 billion) and loans to the outside world (€800 million).

In the private sector, company borrowing rose by €1 billion, mainly due to financing obtained from abroad (€700 million), the BdP said.

The borrowings of individuals increased €400 million, reflecting the financing obtained from the financial sector.

In May 2021, the annual rate of change (y-o-y) of total debt of private companies was 1.8%, 1.0 percentage points less than in April.

The y-o-y rate of change of total indebtedness of private individuals rose to 2.3%, up 0.4 percentage points from April.