Bank of Portugal Lowers the Maximum Household Debt-Service Ratio to 45% and Trims Banks' Room for Exceptions From August 1
The Bank of Portugal's new Macroprudential Recommendation cuts the maximum debt-service-to-income ratio (taxa de esforço) from 50% to 45% for mortgage and consumer credit, and trims banks' exception margin from 15% to 10%. It applies to loans assessed from 1 August and may later become binding law.
