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Credit Risk in Portugal is Increasing, Bank of Portugal Says

The risk of a borrower failing to repay a loan in Portugal is increasing and is linked to the country’s current economic cycle, Bank of Portugal Vice Governor Pedro Duarte Neves said.

“An increase in credit risk is an unavoidable reality,” Neves said at a conference today in Lisbon. While banks have succeeded in bolstering their capital ratios, the current setting remains difficult for the banking system, he said.

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