Non-financial sector debt grows by €1.3Bn

Portugal’s non-financial sector debt has hit €810.8Bn. Private companies and households accounted for the majority of this indebtedness, in the order of €451.7Bn. The debt grew by €1.3 in August alone, to a total of €810.8Bn.

According to data released by the Bank of Portugal (BdP), private companies and households accounted for the majority of this indebtedness, to the tune of €451.7Bn, while the public sector, which includes public administrations and companies, represented €359.1Bn.

Private sector indebtedness increased by €0.3Bn, as a result of the “increase in household indebtedness of €0.7 billion, mostly for housing purposes”. Meanwhile, private companies asked for less money, with their indebtedness decreasing by €0.3Bn, mainly from the financial sector in the form of loans.

The institution led by Mário Centeno reports that public sector indebtedness has increased by one billion euros. “This increase was mainly reflected in the increase in liabilities, in Treasury deposits, with the general government”, an increase of two billion euros. “On the contrary, the sale of Portuguese debt securities, held by non-residents, to resident sectors contributed to the reduction of public sector indebtedness to the exterior, to the tune of €1Bn.