Portuguese banks continued to accelerate lending in July, although that month the Bank of Portugal's recommendation came into force to set limits on household financing. In consumer and consumer credit, the credit stock increased last month by 133 million euros to more than 124 billion euros, according to data released by the Banking Supervisor on Tuesday.
It was the second month of the year in which the credit rose. In March, lending to households increased to 157 million. The increase is mainly due to the financing for consumption. The number of loans in this segment increased by 144 million euros. Portuguese banks have a total of EUR 25.9 billion in consumer credit.
In homes, the value of depreciations remains higher than that of new loans. But scary, because the stock fell only 11 million euros. The Portuguese will owe a total of 98.1 billion euros in loans for home purchase. Despite the drop in total value, new housing financing operations have accelerated in recent months. One of the reasons why the Bank of Portugal recommended financial institutions to observe certain limits when providing credit.
These rules apply to both home loans and consumer credits. It requires that the effort of the person applying for the credit be calculated and that the expenditure to obtain the benefits does not exceed 50% of the income. The Bank of Portugal also wants to limit the conditions for granting loans (40 years in residential and 10 years in consumer contracts). For home loans, the regulator has also determined that the loan may not exceed 90% of the value of the property given as collateral.