Portugal unveils more debt-cutting measures

AP News
Posted: Mar 11, 2011 7:25 AM
Portugal unveils more debt-cutting measures

Portugal's finance minister has announced additional tax hikes and money-saving measures to ensure the debt-laden country meets its deficit-reduction targets through 2013.

Portugal is under acute market pressure to restore its fiscal health after piling up heavy debts during a decade of feeble growth, and analysts predict it may need a bailout like Greece and Ireland.

Its borrowing costs have soared as investors demand crippingly high returns for the risk of lending it money.

Finance Minister Fernando Teixeira dos Santos on Friday unveiled a raft of measures he said would ensure the deficit, which soared to 9.3 percent of GDP in 2009, falls to 3 percent next year.