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Carlos Costa: “Portuguese companies stand among the most leveraged in Europe”

Page created: Wednesday, 3 January 2018 13:39 GMT

Thematic
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Debt  Portugal  Public Debt

“Portuguese companies stand among the most leveraged in Europe” — the warning was made by Carlos Costa, governor of the Bank of Portugal. In an opinion article published by the Portuguese newspaper Público this Tuesday, the governor highlights that the Portuguese society wants more than what the economy can provide right now, adding that companies’ indebtedness is an issue that must be solved “urgently”.

“We know that current wishes for individual well-being and collective equity in the Portuguese society exceed the economy’s ability to produce”, the governor highlights. Carlos Costa recalls that the potential growth is now “at very low levels” (between 0% and 2%). This means that a set of challenges need to be solved before “citizens’ aspirations in terms of income” are able to meet the production of the Portuguese economy.