Companies vulnerable in 2023

Around 25% of all Portuguese companies will be in a vulnerable situation next year because of higher interest rates on loans.

Both the pandemic and fallout from the war in Ukraine have left many companies in a fragile situation, with the Bank of Portugal expecting the number of companies in a vulnerable position to rise.
The bank estimates that over 25% will face difficulties balancing their books and cashflow, and paying their bank loans next year, compared to 12.3% in 2019.
“The expected increase in interest rates to the middle of 2023 should have a significant and relatively rapid impact on the cost of company borrowing, posing a risk for the ability of these companies to service their debt”, states the Bank of Portugal in its Financial Stability Report which was released today.(Friday 25 November)