Portugal: The ending of moratoria has not brought a significant increase in non-performing loansThe public and private moratoria granted since the onset of the Covid-19 pandemic to the Portuguese non-financial private sector[1] have, to a very large extent, now expired. The outstanding amount of loans under moratoria stood at EUR3.1 bn in October 2021, from EUR3.6 bn in March 2020 and a peak of EUR46.3 bn in September 2020. Moratoria now cover only 1.5% of outstanding loans to households and non-financial corporations, from 1.9% in March 2020 and 23.5% in September 2020.
The expiry of moratoria since September 2021 has not, so far, resulted in a significant increase in non-performing loans[2]. Their outstanding amount (EUR4.0 billion) and ratio (2.0% of loans) have returned to their July 2008 levels. All other things being equal, under the extreme hypothesis where all loans subject to moratoria became non-performing, their outstanding amount (EUR7.1 billion) and ratio (3.6%) would be in line with the figures from October/November 2019 (EUR7.2 billion and 3.8% respectively).
