Markets Briefing
Markets, Business & Tech Briefing: PSI Slips 0.6%, BCP Lifts on Results, Bund Spread Holds 35bps
The latest Portugal news, analysis, and what it means for expats and residents.
The Portugal Brief
Finance
Banco de Portugal's Q1 Bank Lending Survey Catches Banks Tightening SME Credit Criteria — Risk Perception Drives the Squeeze, Mortgage Demand Is Forecast to Cool in Q2 Even as the Stock Keeps Growing
BdP's April 28 BLS shows banks tightened SME credit criteria in Q1 2026 while demand kept rising. Large-company and mortgage screens held flat in Q1; mortgage criteria are flagged tighter for Q2. Risk perception drives the squeeze.
Politics
Government Sends Tribunal de Contas Reform to Parliament — Calamity-Recovery Contracts Now Fully Exempt from Prior Vetting and €10 Million Threshold Reaffirmed as Utility, Cleaning and Nonprofit Service Contracts Drop Out of Visto Prévio
The government delivered the LOPTC reform to Parliament Tuesday — €10 million threshold reaffirmed and a new carve-out fully exempting calamity-recovery contracts from prior vetting. Tribunal de Contas warns of credibility risk; PS and Chega still in play.
Tourism
Portuguese Residents Took a Record 26 Million Trips in 2025 — INE's Provisional Series Posts +13.7% Growth, Domestic Travel Climbs 14% to 22.2 Million as Outbound Edges Past 3.85 Million
INE's provisional 2025 series posts a record 26.049 million resident trips, +13.7% YoY and the first to clear the pre-pandemic 2019 mark. Domestic travel climbs 14% to 22.2 million; outbound rises 12.5% to 3.858 million.
Government
Cabinet Modernises the IPO Vehicle-Inspection Regime — Municipalities Get Tender Power for Low-Density Centres, Sanctions Tightened, IMT to Adopt New Tech Tools
Cabinet's 23 April Decree-Law modernises IPO vehicle-inspection regime: municipalities can run tenders for low-density centres, sanctions tightened, IMT gets new tech tools. €37.47 light-vehicle fee unchanged for 2026.
Finance
Bank Millennium's Polish Quarter Lifts BCP Earnings Pulse — Q1 2026 Net Profit Up 68% to €71.2M as Swiss-Franc Mortgage Provisioning Drops 61% and Business Lending Grows 27%
Bank Millennium's Q1 2026 net profit hit €71.2M, up 68% year-on-year. Swiss-franc mortgage provisioning dropped 61% and corporate lending grew 27%. Polish subsidiary de-risks BCP's group Q1 print expected early May.
Business
Air France-KLM and Lufthansa Get 90 Days to Submit Binding Bids for 44.9% of TAP — Cabinet Authorises Phase Three of Privatisation, Final Decision Targeted for Late August
Cabinet authorises Air France-KLM and Lufthansa to submit binding bids for 44.9% of TAP by 22 July 2026. Both industrial plans are 'very equivalent', so price will decide. Government decision targeted for late August, closing in 2027.