Portugal 2010 budget deficit revised higher

The woman passes the empty beach resort from Figueira da Foz, 7. April 2011.

Credit: Reuters/Jose Manuel Ribeiro

LISBON | Sun Jun 24, 2011 6: 48 am EDT

Lisbon (Reuters)-in Portugal, with the deficit by the year 2010 was changed to a higher 9.1 percent of gross domestic product, increasing the pressure on the caretaker Government negotiates the terms of a bailout to reach 80 billion euros.

The statistics agency INE said in a statement late Saturday was revised higher due to the full integration of the three public and private sectors on the accounts of the deficit.

Portugal this month became the third euro-zone to seek a bailout for Greece and Ireland, when the country's borrowing costs too expensive after the Government collapsed.

INE said that changes in the current account deficit came because of the revision of the public accounts in Portugal together with the Agency, the European statistics of Eurostat. The revision has been accelerated due to the application for financial aid, said the INE.

"From the request for foreign assistance by Portugal, was the need to accelerate the calendar (revision) in order to build the current data for the year 2010, which will form the basis in negotiations," he says.

Officials from the European Commission, IMF and the European Central Bank are currently in Lisbon via public accounts in Portugal. In Portugal, the caretaker Government hopes that the loan and its terms and conditions can be finalized by mid-May.

In Portugal, the 2010 budget deficit has already had the INE estimated at 8.6 per cent of GDP, above the Government target of 7,3%. Announced that the result at the end of March, after reviewing the proposals of the Eurostat public accounts.

Revision meant that the overall ratio of debt to GDP in Portugal also increased in the year 2010, to 93 percent from the previous estimate of 92,4%, INE said.

A higher budget deficit last year was probably harder for Portugal this year's deficit target of 4.6% of the gross domestic product.

(Reporting Axel bugge; Editing David Cowell)

View the original article here