For Valdis Dombrovckis, the European Comission (EU) Vice-President, the volumes of Non-Performing Loans (NPLs) in Portugal are a cause of concern. During an audition in the Portuguese National Assembly last Friday, the EU responsible showed his concern about the last data released by the European Central Bank which point to the NPL downsizing in Portugal still far from the European average. The NPL ratio in the Portuguese market fell from 17.9% in June 2016 to 15.5% in June 2017, in a correspondent decrease of about € 8 billion.

Speaking to the Portuguese Deputies, Dombrovckis warned that the Brussels sees «clear progress but the Portuguese NPL ratio is still well above the European average. That is why there is still work to be done in this area, given that the banking sector continues to be in risk».

According to the EU Commissioner, «during the last three years the NPL was reduced by 1/3 within the European Union, corresponding to about € 300 billion, and some of the countries that had high rates of NPL have substantially lowered that risk, making that the UE ratio stands now on the 4.4%».

Original Story: TSF Radio
Photograph: EPA/Stephanie Lecocq
Translation and Edition: Prime Yield