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Portugal's budget deficit last year higher than expected

Xinhua, March 25, 2016 Adjust font size:

Portugal's budget deficit last year was higher than expected due to the 2.8-billion-euro rescue of Banco International do Funchal (Banif), figures released on Thursday by the National Institute of Statistics (NIE) showed.

Portugal's budget deficit in 2015 was 4.4 percent of Gross Domestic Product (GDP), according to the statistics body.

However, the country's deficit would have been 3 percent last year if it hadn't been for the bank rescue, closer to its 2.7 percent target. The European Union (EU) considers any deficit over 3 percent to be excessive.

Debt-laden Portugal agreed to rescue Banif last year, following a state rescue of Banco Espirito Santo, the country's largest listed bank, the previous year.

Portugal has been striving to reduce its deficit faced with mounting pressure by the EU, while the leftist government tries to roll back austerity imposed under a 78-billion-euro bailout program the country ended in 2014, when the country's economy returned to growth.

Portugal's deficit target for 2016 is 2.2 percent of GDP. Enditem