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Tue Dec 25, 2012, 05:51 PM

Portugal to hold fire-sale of state assets

Source: The Guardian

Portugal to hold fire-sale of state assets

Giles Tremlett
The Guardian, Tuesday 25 December 2012 21.37 GMT

Portugal is to embark on a sweeping fire-sale of state companies over the coming months, possibly even privatising state broadcaster RTP, as it bends to the will of the troika of lenders that bailed it out 20 months ago.

With the government of prime minister Pedro Passos Coelho hoping to persuade the troika of the European commission, the European Central Bank and the International Monetary Fund to treat it more leniently in 2013 by lowering interest rates on loans, the sell-off of national companies is seen as one way of winning support.

Airports operator ANA is expected to be sold this week, with French construction group Vinci reported to have bid €3bn (£2.4bn). A consortium led by the Zurich airport operator Flughafen Zurich and Germany's Fraport is thought to be the other leading bidder.

But finding suitable buyers for Portuguese state companies is not always easy. Brazilian businessman Germán Efromovich tried to buy ailing national airline TAP for €36m last week, but his offer, which reportedly included a further €315m in capital for the airline, was turned down after the government said his financing was not solid enough.

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Read more: http://www.guardian.co.uk/world/2012/dec/25/portugal-hold-fire-sale-state-assets

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Eugene Dec 2012 OP
msongs Dec 2012 #1
littlemissmartypants Dec 2012 #2

Response to Eugene (Original post)

Tue Dec 25, 2012, 06:15 PM

1. so how much have they slashed their military budget.... nt

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Response to msongs (Reply #1)

Tue Dec 25, 2012, 06:22 PM

2. This much...


The Defense Ministry of Portugal's budget represented 1.4% of GDP in 2010, standing at US$3.1 billion. The country's defense budget grew strongly at a CAGR of 8.58% during the period from 2006 through 2010, but with a soaring national debt, the government was forced to adopt austerity measures which are expected to result in the defense budget declining at a CARC of -0.45% during the period from 2011 through 2015 to reach US$3.1 billion by 2015.

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