Portugal: Public borrowing requirement to be higher this year, lower next – UTAO

Page created: Thursday, 13 October 2016 8:47 GMT

CGD   IGCP   Public borrowing  UTAO

Lisbon, Oct. 12 (Lusa) – Portugal’s public sector borrowing requirement for 2016 has been revised upwards by €700 million to €23.7 billion, above all because of the need to inject finance into state-owned bank Caixa Geral de Depósitos (CGD), a parliamentary budget watchdog said on Wednesday.


In its monthly note on public indebtedness, which Lusa has seen, the Technical Budget Support Unit (UTAO) recalls that in July the borrowing requirement was €23 billion and states that in September it increase to €23.7 billion, according to a presentation to investors by the state agency charged with managing public debt, the ICGP.


This alteration, the note says, “is the result of the upward revision of net spending on financial assets of 100 million euros to 2,800 million euros due, above all, to the new CGD capitalisation programme.”


Even so, it states, the increase is offset by the reduction of a programmed repayment of a loan from the International Monetary Fundy to €6 billion from €8.8 billion.


Where 2017 is concerned, the borrowing requirement has been revised down, thanks to a reduction in the expected amortisation of medium-and long-term bonds, to €7.4 billion to €7.9 billion, the UTAO says.


For this year a repayment of €1.5 billion in IMF loans is also foreseen, it calculates.