There are more foreigners taking credit from banks and half of these debtors have Brazilian citizenship, data updated on Thursday by Bank of Portugal. The percentage of foreign debtors who obtained new loans last year rose again to reach 10.3% of the total new debtors, and holders of Brazilian citizenship represent half of this universe. The importance of foreign debtors is particularly evident in new loans to purchase, build or work on a second home, as well as leasing and purchasing land to build a home.
The Monetary Authority said: “The weight of foreign debtors in the total number of people who obtained new loans rose again: from 8.2% in 2021 to 10.6% in 2022, and in 2023, it reached 13.5%.” Which means that the weight of foreigners was 1.6 times higher last year than it was in 2021.
Absolute numbers also indicate an increase in the number of foreigners. Taking into account the total number of people who received credit each year (which was about 1.4 million in 2021 and 1.6 million in each of the following years), the total number of foreigners who obtained credit was 115,080 in 2021, and 169,600 in 2022 and 215,840 in 2023. This means that between 2021 and 2023, the number of foreigners taking loans from banks increased by about 100,000 people.
The bank adds in the same note that “in 2023, half of these debtors would have Brazilian citizenship.” The weight of debtors of Brazilian nationality was already equal to half the number of foreign debtors in the previous year.
In this description of the file of creditors who obtained credit in 2023, the Central Bank adds that the number of men who obtained new credit “was again higher” than the number of women, when analyzing all types of credit. However, in housing credit “it was similar”.
Globally, “Financial institutions in Portugal signed 2 million new credit contracts, with 1.6 million people, for a total of 25 billion euros. The number of new contracts was similar to the number in 2022, but the total amount decreased by 11%.” .
Fewer people are getting credit to buy their own homes
In an analysis of the types of credit granted by banks last year, the institution led by Mario Centeno indicates that 117,000 people were able to obtain loans for their permanent housing, which represents a decrease of 30,000 compared to 2022. This represents a decrease of 30,000 compared to 2022 A different trend than recorded in 2022 when the number of people who obtained credit to buy their own permanent home increased by two thousand compared to 2021. A development that was not unrelated to the escalation of interest rates by the European Central Bank, with an impact on Euribor futures rates. Benefit.
Returning to the year 2023, and the world of new creditors for personal and permanent housing, out of 117 thousand people, “42% of them are between 31 and 40 years old. The majority work for others and have a higher level of education. Half of them live in the regions.” Greater Lisbon, Porto Metropolitan Area and the Setubal Peninsula.” The bank also analyzes the amounts of new loans contracted. “Half of the new loans for permanent housing were equal to or less than 117,000 euros, 70% of them were less than 150,000 euros, and only 4% exceeded 300,000 euros.”
As for other housing loans (which include purchase, construction and business loans for secondary or rental housing, or purchasing land to build housing), the bank’s data allows us to conclude that there is a high percentage of foreigners in this type of housing loans. Housing.credit. “Of the total debtors of other home loans contracted in 2023, 26% were foreigners, mostly from Angola, Brazil, the USA and the UK. In 2021, this proportion was 17%.” In other words, more than a quarter of this new credit goes to foreigners.
Looking at the amounts of this type of credit, it is noted that “40% of the total amount of other housing loans was granted to foreigners. Analysis by region shows that this percentage was 71% in the Algarve, and 47% in Greater Lisbon.” And 32% in the Porto Metropolitan Area.”
The bank also reveals that in 2023, 578,000 people took out personal credit, and 253,000 people took out car credit (up 15,000 from 2022). “Among new car credit contracts, 75% were less than 20,000 euros and only 1% exceeded 50,000 euros,” he added. “9% of personal credit and 13% of car credit were given to foreigners.”
Updated news on the absolute numbers of foreigners who obtained credit from banks in 2021, 2022 and 2023
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