The Portuguese executive decided to increase by 100 million euros the public guarantee for housing credit aimed at young people. This measure was published in the Official Gazette, thus becoming official.
The objective of this increase is to respond to urgent requests from two financial institutions: Novo Banco and Montepio. These entities saw their initial shares of the guarantee program run out quickly.
The public guarantee line works as a protection for banks, encouraging them to grant credit to young people with less financial capacity. When the State guarantees part of the loan, banks assume less risk.
This increase comes in a context of increased demand for housing by young people and difficulties in accessing mortgage loans, especially for a first home.
