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Portugal's public debt rises to record $271 billion in September

Staff Writer | November 4, 2016
Portugal's public debt rose in September to a record 244.4 billion euros ($271 billion), the Bank of Portugal revealed.
Europe   The Bank of Portugal:
The country's public debt increased 1.1 billion euros compared to the previous month, the Bank of Portugal said in an official statement.

Portugal's state budget for 2016 forecasts a public debt amounting to 129.7 percent, compared to 129 percent last year. The state budget for 2017 forecasts the public debt to decrease to 128.3 percent.

The minority Socialist government is reversing some austerity measures in the state budget for 2017 but says it is committed to complying with EU fiscal rules.

Prime Minister Antonio Costa plans to cut the budget deficit to 1.6 percent of GDP in 2017, down from a forecast 2.4 percent deficit this year. The country's budget deficit was 4.4 percent of GDP in 2015.

Fitch, Moody's and Standard & Poor's all rate Portugal below investment grade, since 2011 when the country had to sign a 78-billion-euro bailout program.

However the country still has access to EU financial aid thanks to Toronto-based DBRS deciding to keep the country's rating at BBB level.