The bank agrees with the extension of the moratoriums and anticipates an increase in non-compliance

The Portuguese Association of Banks (APB) applauds the extension of credit default, but anticipates an increase in bad debts. “We cannot have doubts that any recession automatically implies a significant increase in non-performing loans,” says Fernando Faria de Oliveira, president of APB, in an interview with Negócios and Antena 1.

For Faria de Oliveira, “the extension of the moratorium makes a lot of sense. The pandemic has not ended, there is this new outbreak, there are sectors of activity heavily penalized by this pandemic and the main objective is to allow time to allow a recovery so that companies can comply with their obligations to the banking system. ”.

But more than avoiding bad credit, the important thing, underlines the president of APB, is to avoid the closure of viable companies. “Without a doubt, on the one hand default is being avoided, but the fundamental reason is not only to avoid default, it is fundamentally to allow these companies to survive. The question of supporting viable companies is fundamental in the recovery of the economy ”.

The government announced the extension of bank moratoriums for families and companies from March to September 2021.

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