May 24, 2016 / 7:06 AM / a year ago

BRIEF-Moody's says Portugal's very high debt burden is a key challenge

May 24 (Reuters) - Moody’s On Portugal

* Portugal’s very high debt burden is a key challenge, against the background of only moderate economic growth prospects

* Portugal’s economy continues to grow much more moderately than other euro area periphery countries such as neighbouring Spain

* Expects gradual decline in public debt ratio in coming years,but also notes that downward trend is vulnerable to fiscal slippage

* Expects budget deficit to be 3% of GDP this year and thus higher than the government’s target of 2.2%,

* Apart from government’s own finances, the persistent weakness of the banking sector remains a key risk for Portugal’s credit standing

* Portugal’s economy has been rebalancing towards the tradable sector and has seen improvements in its external competitiveness indicators Source text for Eikon: )

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below