In 2019

Default ratio of non-financial corporations decreased sharply

According to the data provided by the Bank of Portugal (BoP), at the end of December 2019, the balance of credit granted to non-financial corporations located in the Autonomous Region of Madeira stood at 1,513.8  million euros, down by 9.9% year-on-year. The default ratio of this type of corporations dropped to 7.9%, remaining 3.3 percentage points (p.p.) above national average.

In the household and Non Profit Institutions Serving Households (NPISH) sectors, the balance of credit granted at the end of the reference period amounted to 3,243.7 million euros in last December, down by 6.5% from the end of the same month in the previous year. 65.0% of that balance related to the “housing” segment and the remaining 35.0% to “consumption and other purposes". Compared to December 2018, the balance of loans granted in the first segment decreased by 0.8%, while in the case of the second segment, there was a 15.4% drop.

Household and NPISH debtors amounted to 101.6 thousand as of December 2019, showing an upward trend over the past year, driven by the increase in borrowers for “consumer and other purposes”. The overall growth was 10.1% year-on-year, and in this particular segment it reached 12.1%. In the “housing” segment there was an increase of 2.8%.

Overdue loans in the housing segment did not exceed EUR 29.6 million, representing a ratio of overdue loan ratio of 1.4%, 0.6 p.p. above the national value. Compared to the end of 2018 this ratio dropped by 0.5 p.p. in the Region.

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