Bank of Portugal – Amendments to the macroprudential Recommendation on new credit agreements for consumers

On 31 January, the Bank of Portugal, in its capacity as macro-prudential, published a new press release informing that the macroprudential Recommendation on new credit agreements for consumers was amended.

Referring to the current economic environment, characterised by high uncertainty, and to the slowdown in economic activity, the Bank of Portugal decided to reduce the maximum maturity of new personal credit to 7 years, except for credit for education, healthcare and renewable energy, which will continue to have a maximum maturity of 10 years.

In addition, the Bank of Portugal limited to 10%, each semester, the total amount of new credit granted by the institutions to borrowers with a Debt Service-to-income of up to 60%.

These changes will enter into force as of 1 April 2020.

For more information please contact us at mac@ccsllegal.com

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