Portugal’s total debt hits new €800Bn record
The total debt of the Portuguese economy — families, private companies and the public sector, minus the financial sector — has risen by €10Bn since the start of the year.
And it rose again in April for the fourth month running, hitting a new record of just over €800Bn according to data released from the Bank of Portugal.
Non-financial sector debt climbed almost €2Bn to €804Bn by the end of April this year. Most of this increase came from the public sector where indebtedness grew by €1.8Bn. The increase was mainly down to financing obtained from private individuals (€1.3Bn) from National Savings Bonds.
Families have taken their deposits from banks (which are not included in the statistics) to buy the bonds. In her words the State sold debt o families which now hold assets.
Public sector debt also increased via the public administration (€1Bn) and from the financial sector (€500 million). On the other hand public debt to overseas agencies fell €1.1Bn.
Total public debt hit €362.8Bn in April, corresponding to 45% of the total indebtedness of the Portuguese economy.
As for the private sector, meaning private companies and families, the debt rose to €441.2Bn, up by €100 million. The behaviour is different for company debt and individual/family debt: corporate debt rose €200 million while family debt fell €100 million.