Demand for loans from small and medium-sized enterprises (SMEs) increased at the end of last year, due to the need for financing and the level of interest rates, according to a survey carried out by Banco de Portugal (BdP).
In the data released this Tuesday, 3rd, referring to the questionnaire sent to banks on December 15, 2025, the BdP concluded that there was an increase in demand for loans from SMEs in the fourth quarter, compared to the previous quarter.
The factors that contributed to this situation were “the needs to finance stocks and working capital and, to a lesser extent, the needs to finance investment and the general level of interest rates contributed to the increase in demand in SMEs”, as explained by the central bank.
On the other hand, the “recourse to internal generation of funds as an alternative financing source contributed slightly to reducing the demand for loans by companies, in addition to the issuance of debt securities in the large companies segment”.
As regards expectations for the beginning of this year, they point to an increase in demand for loans by companies, especially SMEs and short-term loans.
This survey also has data on the supply of credit, but there are no changes for companies and individuals.
The BdP also analyzed the exposure of Portuguese and euro area banks to trade tensions and associated uncertainty, but concluded, in the Bank Credit Market Survey, that “the majority of Portuguese banks consider that their exposure to changes in commercial policies — through credit granted to companies with exposure to international trade — was of little importance in the last 12 months and expects this assessment to be maintained over the next 12 months”.
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