Portugal's overall debt rises as public and private borrowing increase in August

According to the Banco de Portugal, the non-financial sector's total debt expanded in August, with public administrations and state-owned entities recording a notable increase in borrowing. This rise was largely linked to higher deposits placed with the Treasury and new funding from the Recovery and Resilience Plan. Private households also boosted their debt, mainly through mortgage credit, whereas private companies reduced their borrowing modestly.

Debt issued via bonds fell, offsetting some of the increase. Annual growth rates indicated that household debt grew by around ten percent year-on-year, while private corporate debt rose by a few percent.