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 “Jornal de Negosos” and Antenna1, said “it makes sense to review the macroprudential 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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Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
