July 20, 2023 23:45
Thiago Miranda
Banks are obligated to simulate provisions by increasing interest rates by three percentage points. The scenario means an unprecedented interest of 7%. Banco de Portugal promised to revise the rule
July 20, 2023 23:45
Portuguese banks already accept a large number of loans that still have to be made due to the Bank of Portugal (BdP) law which dictates that in analyzing customers’ affordability, a scenario of a three percentage point increase in the interest rate is considered. BDB Deputy Governor Clara Raposo outlined the problem and, in a recent interview with “Journal de Negusius” and Antenna1, said “it makes sense to review the macro-prudential recommendation, and now we have this summer period and a better ability to predict the future development of interest rates.” When will that be? Asked by Expresso, the BdP did not respond.
Most of the banks interviewed by Expresso confirm that this measure currently limits many operations. Right now, with Euribor rates around 4%, simulating the effect of an additional three point increase would mean looking at interest rates in the range of 7%. Levels that Euribor did not reach and which, according to current forecasts of financial markets, will not reach now either.
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Andrea Hargraves is a contributor to Brytfmonline.com, covering a broad range of topics including news, politics, business, technology, sports, entertainment, and lifestyle. She is committed to delivering clear, accurate, and reader-focused reporting that helps audiences stay informed about current events and emerging developments. Andrea’s work emphasizes useful information, balanced coverage, and stories that matter to everyday readers, making complex topics accessible and relevant to a wide audience.