Loan defaults in Portugal reach record levels in July

12 September 2013

The difficulties faced by companies and families to meet their bank debt obligations due to the economic recession and unemployment has led to default on loans reaching a record level, the Bank of Portugal said.

Figures published Tuesday by the central bank for July showed that Portuguese banks had 17.02 billion euros in questionable debt, which is 7.28 percent of total loans provided (233.9 billion euros) to companies and families.

The biggest share of this debt belongs to companies, whose debt defaults totalled 11.41 percent of total loans granted, or 11.8 billion euros of a total of 103.5 billion euros in loans.

Amongst families, which account for 130.3 billion euros in loans and 5.2 billion euros in defaults, unrecoverable loans account for 3.99 percent of loans, which is the highest ever level. (macauhub)