Portugal's public guarantee scheme drives record SME credit in 2025

The Banco de Portugal reported that loans backed by public guarantees reached €4.1 billion in the latest year, the highest level since 2022. One in five Portuguese firms used this instrument, with public guarantees accounting for 32 % of new credit to small‑and‑medium enterprises (SMEs). The average interest rate on guaranteed loans was 2.96 %, notably lower than the 3.82 % rate on non‑guaranteed financing, reducing borrowing costs for businesses. The bulk of guaranteed lending went to sectors such as commerce, transport, hospitality, industry, electricity, gas and water, with the northern region leading in absolute volume.

In the first quarter of 2026, households emerged as the largest net source of financing for the Portuguese economy, providing liquidity equivalent to 1.3 % of GDP to the financial sector, 1.2 % to the rest of the world, 0.9 % to non‑financial corporations and 0.7 % to public administrations. Their contributions were driven by higher cash and deposit balances, increased investments in insurance, pension and guarantee schemes, and a rise in equity holdings across domestic and foreign entities.