The indebtedness of the non-financial sector (NFC – public administrations, companies and private individuals) fell by €400 million in July compared to June this year, totalling €806.6 billion, the Bank of Portugal (BdP) said.
Of this total, €440.6 billion related to the private sector (private companies and individuals) and €365.9 billion to the public sector (public administrations and public companies).
In July, private sector indebtedness fell by €1.4 billion, with the indebtedness of private companies falling by €1.3 billion, essentially to foreign countries (€900 million) and to the financial sector (€400 million), in the form of short and long-term loans.
Household indebtedness fell by €100 million, mainly to the financial sector.
As for public sector debt, it increased by €1 billion.
According to the BdP, “this increase was mainly external (€900 million), essentially due to the issue of short-term debt securities.”
In year-on-year terms, compared to July 2022, the indebtedness of private companies and the indebtedness of individuals grew by 0.4% compared to the same month in 2022.
“However, this increase was lower in both sectors than in June 2023, by 0.3 and 0.5 percentage points respectively,” notes the central bank.
The BdP updates its statistics on financial sector indebtedness on 23 October.
Original story: CNN Portugal | Agência Lusa
Photo: Big Stock Photo
Edition and translation: Prime Yield