PORTUGAL

Lisbon gets through latest examination by bailout troika

Three major banks to get 6.65-billion-euro injection

The European Union, the IMF and the European Central Bank have approved Portugal's performance in fulfilling the commitments it took on in exchange for a 78-billion-euro bailout, allowing a further four billion euros in funds to be disbursed.

After examining the Portuguese economy over the past two weeks, the troika declared that the government of Prime Minister Pedro Passos Coelho had fulfilled all of the conditions imposed in the bailout package approved in June of last year.

At a news conference on Monday, Finance Minister Vítor Gaspar said: "We have to focus on what depends on us and follow the program with determination and sacrifice." Gaspar said the government now expects the local economy to shrink by only 3.0 percent this year, compared with an earlier forecast of 3.3 percent, as a result of better performance by the export sector than had been predicted.

He did, however, add a caveat: "We should exaggerate things, since the differences are not very big."

The Portuguese government has imposed a draconian austerity drive, including tax hikes and cuts to pensions and public sector wages. This will bring its public deficit down from 9.8 percent of GDP in 2010 to back within the EU ceiling of four percent by next year.

Gaspar said Portugal needed to bring down labor costs, which "unfortunately and inevitably" would have to mean cuts in wages.

In a parallel development, the government announced it will inject 6.65 billion euros into three leading banks. Of the total, five billion euros will come from a 12-billion-euro tranche of the bailout package set aside for the country's lenders.

Banco Comercial Português is to receive 3.5 billion euros, the state-controlled Caixa Geral de Depósitos 1.65 billion, and BPI Bank 1.5 billion.

The funds will allow the three lenders to meet the European Banking Authority's requirement of a core Tier 1 capital ratio of nine percent by the end of this year. Banif is also expected to request state funds.

Para poder comentar debes estar registrado en Eskup y haber iniciado sesión

Darse de alta ¿Por qué darse de alta?

Otras noticias

Últimas noticias

Ver todo el día

Podemos ve “una campaña de infamia” en las críticas a Errejón

La formación presenta esta semana la base de su programa económico

El 75% de los canarios está en contra de las prospecciones

Un sondeo del Gobierno canario muestra que la población preferiría apostar por el turismo

La Audiencia confirma la fianza civil de tres millones para Rato

El tribunal cree que este medio de pago estaba “al margen de cualquier atisbo de legalidad”

Three priests arrested in Granada over pedophilia claims

Judge orders detention of clergymen in response to complaint filed by alleged abuse victim

LATIN AMERICA

Mexicans say “enough is enough” at huge protest rally

Tens of thousands from all walks of life call for changes to prevent a repeat of Iguala missing students case

Venezuela’s Maduro creates major anti-corruption body

The president’s new organization will have the power to investigate and sanction corrupt individuals

Colombia and FARC negotiate hostage release to unblock stalled peace talks

Army general and four others due for imminent release, say guarantors

Mexico’s First Lady to sell her controversial luxury home

Former soap star Angélica Rivera defends President Peña Nieto’s “integrity” and denies any conflict of interest

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana