LONDON (MNI) – Portugal’s privatisation program is set to raise
more money than the country’s government has budgeted for, Fitch
Ratings has said.
In a statement issued this morning, Fitch stated that:
“The high value of bids for Portuguese state-owned enterprises
announced during Q112 means that asset sales should exceed the
sovereign’s target, Fitch Ratings believes. The number of sales is
impressive – as well as other structural measures the sovereign has
implemented – especially considering both the fragile underlying
macroeconomic environment and competing asset sales across the eurozone.
“Total proceeds from privatisations should exceed the EUR5bn
programme target with the expected sale of TAP and ANA-Aeroportos de
Portugal later this year, as well as the postal service and the freight
branch of the rail operator. IMF data shows EUR3.3bn of revenue raised
as of April.
“This performance highlights both the realistic nature of the
programme’s privatisation target and the government’s willingness to
implement public-enterprise reform.
“The final value of some state-owned companies may be trimmed by
market liberalisation. The government is opening up many of the
non-tradable sectors to more competition – which will make them a less
attractive acquisition target.
“A large part of the state-owned sector remains in financial
difficulty, and has been the cause of several upward revisions to the
general government debt and deficit figures since 2010. Most of the
assets which are not being sold are being restructured, with the aim of
achieving an operational balance by year end.
“Caixa Geral de Depositos remains a fiscal liability for the
sovereign. We estimate that the banking sector as a whole may need
EUR6bn from the public sector this year – with further capital required
if the banking sector deteriorates”.
–London newsroom: 4420 7862 7492; email: ukeditorial@marketnews.com
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