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Portugal´s national debt rising rapidly

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Portugal´s national debt again has risen, reaching 134% of GDP at the end of June, an increase of 1.6% in the quarter from March.  

According to data from the Bank of Portugal´s Statistical Bulletin, public debt in March was 132.4%, which in real money is €220 billion. At the end of the first half to the end of June this had risen to €223 billion.


Former Finance Minister Miguel Cadilhe today spared no criticism of the total failure of supervision, considering that the Bank of Portugal has learnt nothing from the BPN collapse and bailout which exposed the taxpayer to multi-billion euro shock, seeing the bank flogged off in 2011 to the Angolans for just €40 million.

"They do not learn from their mistakes," said the economist, adding that the Espirito Santo collapse has discredited the elites in the country, "Portugal is in mourning with this thing. The Portuguese elites, political, corporate and institutional, are all called into question."

Cadilhe said that with proper supervision, action would have been taken earlier in the BES scandal and had information been made public earlier, the capital injection by the Bank of Portugal would never have been approved, "I do not give the benefit of doubt to the Bank of Portugal."

The national debt target for the year end, according to the rose tinted glasses of the Finance Ministry, is 130.2% but the trend is an upward one with the figure growing €9.6 billion since the beginning of the year with any impact from the BES bailout not yet reflected in the national figures.

The government says that the BES bailout money used to recapitalise Novo Banco will not affect the value of the public debt as the €3.9 billion injected into Novo Banco already has been included in the financial cushion that the government has accumulated to support the country´s exit from the adjustment programme.

However the accountants choose play with the figures, the 2014 target in unlikely to be hit which may hinder Portugal´s improving credit ranking.

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Comments  

+3 #3 Donald McDonald 2014-08-23 21:50
To Hell in a Hand Cart

It is important that the last 4 years or so of crisis have not been wasted. As so much of it has been unnecessary. Brussels needs to make an example of one EU country as a warning to all the others that corruption, croneyism, elitism and such like are not wanted in the new 'northern inspired' EU. It holds back the more advanced countries. Brussels needs to send that country to 'Hell in a Hand Cart.'

There are two obvious advantages – Brussels proves, to any passing doubters, atheists and agnostics, that there really is a Hell and secondly it makes clear what a Hand Cart looks like, should any parent be asked by a child doing their homework.

Two countries stand out due to their absurdly high levels of state debt. Greece and Portugal. Greece has a 3,000 year old history and makes a rather nice yoghurt. Portugal does not have any such history and does not make Greek Yoghurt.

Sorry Portugal. 8)
+7 #2 Enid 2014-08-22 18:27
Well said, Clarissa.

But, nearly 30 years ago, Portugal 'promised' the EU it would get its act together. By implication - to get a grip on elitism. Develop its society and economy.

It has clearly failed abysmally. Totally ...

Who can trust any of this 'elite' shower to even change a light bulb? Where is their Jeanne d'Arc in this moment when all true Portuguese must '(wo)man the pumps'.

(OK Jeanne had a problem with the British - but let us overlook that for now.)

There are many Brits here (and other northerners) who would be happy to stand alongside their southern brethren and kick a few elite up the a**e.

Having had so many failed and failing building and business permits - the Presidents of local Camara's will be a useful place to kick off.

Just putting my Hunter wellies on now ... the Ed can pass on the details of where to meet.

But shhh .... in case we get mistaken for a rave !
+5 #1 Clarissa Thompson 2014-08-22 10:23
"They do not learn from their mistakes," ..... collapse has discredited the elites in the country .... The Portuguese elites, political, corporate and institutional, are all called into question."

Bravo - but the problem for Portugal is in having had a non-existent 1974 'pretend revolution. So this comment is from a bloke who is one of the elite. Obvious as otherwise he wouldn't have been anywhere near the top of the pile.

As often said - the UN / IMF / EU ... whatever - should send in a taskforce of Scandinavians to run this place for 3 to 5 years.

Cleaning out he s**t and leaving it being run by Retornados - those returning to Portugal with real world experience.

So the public servants ... SERVE. The politicians make sensible decisions for their communities - not their families and friends. There is a real sense of one nation - not just when the national football team is playing. :sad:

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