Lisbon real estate agent Paulo Silva says Portugal’s booming high-end property market has a Frenchman to thank: François Hollande. 'The French president’s taxes are prompting many to flee their country', says Silva, who heads real estate agency Aguirre Newman. 'Many of these wealthy French are coming to Portugal to take advantage of tax benefits that are better than in other countries'.
Two linked companies, Espirito Santo Group and RioForte, have applied to Luxembourg courts for protection from their creditors in recent days. The Portuguese family dynasty that owns both companies is at a crossroads.
Portugal's government and central bank assured investors on Friday that the southern European country's financial system was sound, aiming to quell worry about the spillover effects of trouble at the Espirito Santo business empire.
This was one of the most anticipated battles of the opening round of matches. Germany, one of the favorites to win the World Cup, taking on Portugal, led by perhaps the best player in the world in Ronaldo.
Portugal’s government says it is forgoing the final 2.6 billion-euro ($3.5 billion) instalment of its three-year bailout package because it cannot meet creditors’ deadlines for the latest promised austerity measures, which have run into legal challenges.
Portugal will spend 4.9 billion euros ($6.58 billion) to rescue its largest listed bank, testing the euro zone's resilience to another banking crisis just months after Lisbon exited an international bailout.
Portugal’s central bank stepped up efforts to clean up the troubled lender Banco Espírito Santo and end its family control after the bank reported a stunning first-half loss of $4.8 billion that will force it to raise more capital.
Sovereign recapitalization of banks can perhaps be justified on the grounds that disorderly failure would have disastrous economic effects, although countries can and do wind up insolvent banks rather than recapitalizing them. But there can be no justification whatsoever for bailing out a sprawling retail conglomerate with a corporate structure of extraordinary complexity and opacity.
Portugal will be scratching their heads wondering what could have gone differently after finishing their World Cup campaign level on points with the USA and on a more positive note than when they were trounced by four goals at the hands and feet of Germany.
The rejection by Portugal's constitutional court of a series of austerity measures will make it more difficult for the country to balance its budget by 2018 as planned, credit rating agency Moody's said on Thursday.