The IMF considers that the prospects for financial stability in Portugal have improved, highlighting the reduction in the burden of household debt and the decrease in the differentials of sovereign debt interest rates vis-à-vis euro area countries.
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13/10/2026
by
Lusa
O IMF considers that the prospects for financial stability in Portugal have improved, highlighting the reduction in the burden of household debt and the decrease in the spreads of sovereign debt interest rates vis-à-vis euro area countries.
According to the latest Global Financial Stability Report, released today by the International Monetary Fund (IMF), the balance sheets of Portuguese families have improved in recent years.
Portugal is part of the group of countries where variable rate housing loans represent less than half of total mortgage credit. According to the IMF, households are less exposed to interest rate increases.
The household debt service ratio, which measures the weight of interest payments and amortisations in disposable income, is about 6% below the levels recorded since 2022.
As far as sovereign debt is concerned, the institution led by Kristalina Georgieva highlights the reduction of income differentials between Portuguese bonds and securities issued by the euro area's most secure countries.
According to the institution, this development reflects the improvement of Portuguese public accounts, the measures of the European Central Bank (ECB) to avoid financial fragmentation and the impact of European support mechanisms, including the Next Generation EU programme.
The report adds that the issuance of common European debt has contributed to reducing the vulnerability of bond markets to systemic shocks, limiting the risks of financial contagion between countries in the region.
The IMF added in the report that overall financial markets have remained resilient, supported by sound economic growth and robust business results, but warns that risks to financial stability remain high.
Among the main threats identified are a possible correction of assets linked to artificial intelligence, if the investment and profitability of the sector are lower than expected, a scenario that could be aggravated by the increase in financial leverage and the concentration of exposures.
The Fund also warned of increased inflation or public finance concerns could trigger a sharp rise in sovereign debt interest rates, with extensive repercussions on financial markets.
At the same time, increasingly sophisticated cyber attacks pose an increasing risk in an increasingly digital and interconnected financial economy.