Today's European Surprise: Seriously Under-Reported Debt On A Portuguese Island

portugal madeira sailboat yacht

Photo: Stock Free Images

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.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.