Government savings products have covered household savings in Portugal for seven consecutive months. In October, the holdings of savings and treasury certificates rose again to 31,849.18 million euros, up 679.13 million euros from September.
This is the highest monthly figure since January 2015, almost eight years, according to figures published this Monday by the Bank of Portugal. The trend is driven by the greater attractiveness of savings certificates in recent months thanks to Euribor-indexed rewards.
The number of these products rose in October to 16.020.16 million euros, which is 1,409.32 million euros more than in September. In the case of the “stock” of treasury certificates, there was a further reduction to 15.829.02 euros, which is 730.19 million euros less than in the previous month. However, the fall in Treasury certificates, which has been observed for the past 12 months in a row, has been more than offset by an increase in savings certificates. The attractiveness of these products was enhanced by the increase in the European Central Bank (ECB) interest rates and the subsequent increase in the Euribor rate.
In this new scenario, the Treasury expects for the year as a whole “net funding through savings certificates should be €3 billion, more than offsetting a reduction in funding through treasury certificates of €1.6 billion.”
