Loans for house purchase reached the highest value since 2011, but there was never much credit in default
banks are reopening the credit tap and lend more to households, but the failure is increasing. In June, the bank lent EUR 587 million for house purchase, the highest since March 2011. However, bad loans reached the highest level ever.
The data released yesterday by Banco de Portugal show that, from May to June, non-performing loans in housing increased by 70 million, surpassing the historical high recorded in November 2014. Accounts made, bad debt totaled 2,629 in June, more than 2.7% of the total of housing stock on credit.
the increase in bad debt not deterred banks lend more to households for house purchase. In June, the new credit operations to housing amounted to 587 million euros, 18% more than the 497 million borrowed in May. Besides being to lend more, banks are lending cheaper. In June, the average interest rates on new housing loans operations were 1.94%, down from 1.99% in May. The cycle of falls remains from the early 2015.
In the consumer credit were granted 326 million in June, a million more than in May. In this segment, the non-performing loans decreased by 80 million, reaching 967 million, equivalent to 7.6% of the total credit stock – this is the lowest ratio since June 2010. The average interest rate fell from 7 53% in May to 7.45% in June.
Accounts made, total loans to individuals amounted to 118,404 million euros at the end of June and the bad debt 5122 million, a decrease of 4 7% over a year ago. Companies, new loans totaled 2600 million, down from 3046 million in May. The bad debt between companies amounted to 12 933 million, over 16% of the total credit stock.
As for deposits, remained the growth trend that is already the case for several months. In June, household deposits rose 1,309 million to 140.7 million euros.
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