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WSJ reports that Portugal’s Madeira island failed to report a full $1.5 billion in debts from 2008 to 2010.That amounts to 0.3% of the country’s GDP.
Clearly this oversight will have a significant impact on Portugal’s debt-reduction measures, which were just lauded by EU economic leaders in a press conference today.
Under Portugal’s $107 billion bailout agreement, the country is supposed to reduce its budget deficit to 5.9% of GDP this year from 9.1% last year.
The island was responsible for $688 million of Portugal’s budget this year.
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