In February 2025, the indebtedness of the non-financial sector (public administrations, companies, and individuals) increased by 1.2 billion euros, reaching 820.5 billion euros, as reported by the Bank of Portugal (BdP) on Wednesday.
“Of this total, 457.4 billion euros accounted for the private sector (private companies and individuals) and 363.1 billion euros for the public sector (public administrations and public companies),” stated the banking supervisor’s communiqué.
The indebtedness of the private sector rose by 1.1 billion euros:
“Household indebtedness saw an increment of 0.8 billion euros, mainly with banks, driven by mortgage credit. The indebtedness of private companies grew by 0.3 billion euros, reflecting chiefly an increase with the financial sector (+0.8 billion euros), partially offset by a reduction abroad (-0.5 billion euros),” explained the supervisor.
Meanwhile, the indebtedness of the public sector remained largely unchanged:
“On one hand, there was an increase in this sector’s indebtedness abroad (+2.5 billion euros), through the acquisition of Portuguese public debt securities by non-residents, and from individuals (+0.5 billion euros), mainly via the subscription of savings certificates. On the other hand, there was a reduction in public sector indebtedness to public administrations (-3.0 billion euros), primarily reflecting a decrease in Treasury deposit liabilities,” the note disclosed.
[News updated at 11:06 AM]
