Portugal achieves public debt rate below 100%/GDP

 In News, Public debt, Sovereign debt

Portugal’s finances minister Fernando Medina has achieved the government’s long held aim of reducing Portugal’s public debt to below 100% currently standing at 98.7% for 2023.

The debt has fallen by 13.7% and is one of the government’s cornerstone achievements before it leaves office in March 10 when it may or may not win the elections.
With this reduction, Portugal’s debt now represents less than the value of one year’s national production output, a situation not seen since the third quarter of 2010.
In fact, thanks to high interest rates, above EU average economic growth, and good financial housekeeping, it has done better than even the European Commission had predicted when it calculated the target would only be achieved in 2025.
And according to the Bank of Portugal there was also a substantial reduction in the nominal value of the debt of €9.3Bn to €263Bn.
According to the Bank of Portugal the reduction in debt was supported by a reduction of €11Bn in long term bonds and treasury certificates, there being a reduction of €3.1Bn in the amounts owed by public administrations without borrowing.
There was also positive net issues in savings bonds. (€14.4Bn)

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