The number of foreigners obtaining credit increases and half are Brazilians | Credit

The number of foreigners obtaining credit from banks has risen and half of these debtors have Brazilian nationality, according to data updated this Thursday by the Bank of Portugal. The percentage of foreign debtors, who obtained new credits last year, increased again, reaching 10.3% of the total of new debtors, with those of Brazilian nationality representing half of this universe. The importance of foreign debtors is particularly evident in new credit for the purchase, construction or work on a second home, as well as renting and purchasing land for building a house.

“The weight of foreign debtors in the total number of people who obtained new credit rose again: it went from 8.2% in 2021 to 10.6% in 2022 and, in 2023, it stood at 13.5%”, says the monetary authority, which means that the weight of foreigners was 1.6 times higher last year than in 2021.

In the same note, the bank adds that, “in 2023, half of these debtors had Brazilian nationality”. The weight of debtors of Brazilian nationality was already equal to half of the universe of foreign debtors in the previous year.

In this characterization of the profile of creditors who obtained credit in 2023, the central bank adds that the number of men obtaining new credit “was once again higher” than that of women, when analyzing all types of credit. However, in housing credit “it was similar”.

In global terms, “financial institutions in Portugal signed two million new credit contracts, with 1.6 million people, for a total of 25 billion euros. The number of new contracts was similar to that of 2022, but the amount total decreased by 11%”.

Fewer people taking out credit for their own housing

In an analysis of the types of credit granted last year by banks, the institution led by Mário Centeno states that 117 thousand people were able to obtain loans for their own permanent housing, which represented a decrease of 30 thousand compared to 2022. This is a different trend from recorded in 2022 when the number of people obtaining credit for their own permanent home increased by two thousand compared to 2021. An evolution that was not unrelated to the escalation of interest rates by the European Central Bank, with an impact on contracted Euribor interest rates.

Returning to 2023, and the universe of new creditors for personal and permanent housing, of the 117 thousand people “42% were between 31 and 40 years old. The majority worked for others and had a higher level of education. Half lived in the regions of Greater Lisbon, Porto Metropolitan Area and Setúbal Peninsula”. The bank also analyzes the amounts of new credit contracted. “Half of new loans for permanent housing had a value equal to or less than 117 thousand euros; 70% were less than 150 thousand euros and only 4% exceeded 300 thousand euros.”

As for other housing credit (which includes loans for purchase, construction and works on secondary housing or for rent, or purchase of land for housing construction), the bank’s data allows us to conclude that there is a high proportion of foreigners in this type of housing. credit. “Of the total debtors of other housing loans contracted in 2023, 26% were foreigners, mostly from Angola, Brazil, the USA and the United Kingdom. In 2021, this percentage had been 17%”. In other words, more than a quarter of this type of new credit goes to foreigners.

Looking at the amounts of this type of credit, it is observed that “40% of the total amount of other housing credit was granted to foreigners. An analysis by region shows that this proportion was 71% in the Algarve, 47% in Greater Lisbon and 32% in the Porto Metropolitan Area”.

The bank also reveals that in 2023, 578 thousand people took out personal credit, 253 thousand people took out car credit (15 thousand more than in 2022). “Of the new car credit contracts, 75% were less than 20 thousand euros and only 1% exceeded 50 thousand euros.” “9% of personal credit and 13% of car credit were granted to foreigners”.