At the end of July, the indebtedness of the private sector, which includes businesses and individuals, amounted to 469.1 billion euros, whereas around 379.1 billion euros pertained to the public sector, which comprises public administrations and public enterprises.
In the seventh month of the year, private sector debt increased approximately by 200 million euros compared to June. This occurred as a result of a 900 million euro reduction in corporate debt, which was outweighed by an increase of 1.1 billion euros in individual debt.
The reduction in corporate indebtedness largely reflected “a repayment of long-term debt securities held by non-residents (700 million euros), while for individuals, the variation was attributed to housing loans.
Thus, by the end of July, the debt of private enterprises stood at 301.8 billion euros and that of individuals at 167.3 billion euros.
In the public sector, the increase of one billion euros occurred mainly from external sources (an extra 600 million euros), through the purchase of long-term public debt securities by non-residents.
Public sector debt also rose from individuals (300 million euros) due to the subscription of savings certificates.
By the end of July, public sector debt amounted to 379.1 billion euros.
In the month under review, the annual variation rate (AVR) of private enterprise debt, which excludes the impact of non-transaction-related variations, was 2.0% compared to the same month in 2024, showing a deceleration from 2.6% in June.
For individuals, the AVR was 7.2%, reaching the highest value since the start of the series, accelerating from 6.9% in June. The central bank (BdP) noted that this rate has been rising since the end of 2023.
