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Family, company and public administration debt increases to €794.4 billion

Figure today will be higher: this is data for August

The debt of the non-financial sector (public administration, companies and individuals/ families) increased by €500 million in August compared to July, totalling €794.4 billion, the Bank of Portugal (BdP) has revealed.

Of this total, €355,900 million relates to the public sector (public administration and public companies);  €438,400 million concerns the private sector (private companies and individuals).

In August, private sector indebtedness grew by €1.200 billion, with this increase resulting “mainly from the increase in the indebtedness of private companies, by €800 million”. 

According to the BdP, “the indebtedness of private companies increased with the exterior (€1.3 billion), but decreased with the financial sector (€400 million)”.

The indebtedness of private individuals also grew, by €400 million, “mostly with the financial sector”.

As for indebtedness of the public sector, “it decreased by €700 million and was mainly due to a reduction in indebtedness towards the exterior and private individuals (€1 billion and €400 million, respectively)”.

On the other hand, the public sector’s indebtedness to the financial sector and the general government increased, notes the central bank.

In year-on-year terms, compared to August 2021, the indebtedness of private companies grew by 2.6%, which corresponded to an acceleration of 0.9 percentage points compared to the previous month.

The total indebtedness of private individuals increased 3.9% year-on-year, “slightly less” than in July (4.0%).

The BdP will be updating statistics on the indebtedness of the financial sector on 21 November.