- Contraction projected to reach -3.25%
- Overall Portugal program “on track”
- Growth in 2013 in Portugal “more shallow” than previously projected
- Noticeable progress in Portugal’s structural reforms
- Financing projections in Portugal’s program “remain valid”
- Further increase in unemployment poses risk to Portugal’s program
- “Urgent resolution” needed in debt of Portugal’s state-owned enterprises
- Portugal may need to implement deeper labor market reforms
- Portugal banks will struggle to meet 2012 recapitalization needs
- Portugal debt now predicted to peak at 115% GDP in 2013
Dow Jones reporting.
Elsewhere EU official:
- IMF decision on fresh Portugal aid instalment expected Wednesday
- Assumption is that Portugal won’t need 2nd program