Portugal: Political stability in the short term, challenges ahead, says Credit Suisse

The failure to reach a cross party agreement in Portugal is unfortunate, but political stability is likely to remain
in the short term, according to Credit Suisse’s European Economics research team.

The three main Portuguese political parties did not reach an agreement on the
President of the Republic’s call for a “national salvation” pact.

According to Credit Suisse’s research team, Portugal is more likely to be granted a credit line but risks of a fully fledged programme have clearly increased.

“We continue to believe that forced ‘Private Sector Involvement’ (PSI) is
unlikely given that the economic and political costs would exceed any expected
gains,” Credit Suisse’s report also said.

“Under our base case scenario, we don’t foresee any nominal haircut
on Portuguese bonds but a voluntary rescheduling of private bonds is a

Click here to read full report [asset_library_tag 6881,Credit Suisse European Economics Portugal]

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