Portugal’s NPL stockpile shrank €4.5 billion in the fourth quarter of 2019

According to the latest data released by Portugal’s Central Bank (BdP), the nonperforming loans (NPL) stock within the country’s banking system fell €4.5 billion during the fourth quarter of 2019.

The data can be found in the «Portuguese banking system – recent development» report, according to which the national NPL ratio also reduced in the end of the year, from 7.7% in the third quarter to 6.1% in the quarter ended in December. 

The fall in NPL to non-financial companies was from €3.7 billion to 12.3% and from €400 million to 3.7% for individuals.

Due to the crisis caused by the Covid-19 pandemic, the government has created a law that allows families and companies to suspend credit payments until 30 September.

However, these moratoria do not mean default by customers, nor will such unpaid credit have automatic implications for the banks’ bad debts, according to the authorities’ decision.

Original Story: ECO News | Lusa 
Photo: Photo by Hugo Humberto Plácido da Silva /
Edition: Prime Yield