The total amount of loans granted to individuals and considered bad debt is above € 5 billion since the end of October 2012, continuing slowly but gradually increasing, albeit with different patterns, depending on the order of credits granted by banking. In home loans, for example, the month of June hit numbers never seen in bad debt, with 2.4% of total credit granted for that purpose by the board down on that definition.
According to data from the Bank of Portugal, at the end of June this year there were EUR 5.2 billion in unpaid assigned to individuals, the majority of which related to loans, accounting for a share of 47 7% of the total bad debt – nearly EUR 2.5 billion. This relative weight of credit for housing is still far from the peaks seen in 2005 and 2008 In the past year, the peak was caused by the high interest rates of benchmark, which led to housing being responsible for 57.3% of bad, yet that this total doubtful loans that were well below the current point: in early 2008 the total bad debts in private hands were at 2.2 billion, but has an upward trend that continues into today. Since the beginning of 2008 the bad debt has risen to an average monthly rate of 1.1%, having more than doubled from 2.2 billion to the current EUR 5.2 billion, a jump of 129%.
Looking just at the period since the total doubtful loans exceeded the threshold of five billion, or 3% of gross domestic product, we see that it is in the consumer credit that has been more fought the bad debt: between October 2012 and June this year, total consumer credit risk fell 13.5% from EUR 1.58 billion to EUR 1 330 million. Already in housing gave the reverse, with a rise of 11.6% in unpaid in the same 20 months, a jump which means an increase of 260 million euros in total in unpaid mortgage loans granted.
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