12 June 2019 – Richard D. K. Turner
Portugal’s banks still have almost 24,000 properties, mostly homes, worth more than 4.3 billion euros, for sale. That number has been falling as financial institutions have been selling off large real estate portfolios, taking advantage of the boom.
Banks like Novo Banco, Banco Montepio and Millennium bcp, however, still have over 5,000 properties each on their balance sheets. These figures mean that non-performing loans account for 9.4% of the Portuguese banking industry’s total loan portfolio, while the average for the EU is just 5%.
The Bank of Portugal also recently warned that the real estate boom that has powered sales is showing increasing signs of strain. At the same time, Portugal’s banks are further reducing spreads on mortgage loans, in a fight to maintain market share, while expected housing sales times are beginning to widen.
Original Story: JN – Elisabete Tavares