Portugal’s debt to GDP ratio is expected to increase from 93 per cent in 2010 to 107 per cent in 2012, while austerity measures envisaged are expected to reduce its fiscal deficit from 9,1 per cent to 4,5 per cent next year – that is, to be cut in half in two years.
According to Bank for International Settlement (BIS) data, the total exposure of foreign banks to Spain, Greece, Portugal and Ireland was around $ trillion at the end of 2010, with a significant portion of the exposure being to German and French banks.