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Reuters
7 days ago
- Business
- Reuters
Portugal's government to audit central bank contract over reported risks
LISBON, July 23 (Reuters) - Portugal's Finance Ministry has requested an audit of a contract signed in May by the central bank, whose governor's term ended on Saturday, for the construction of its new headquarters that has raised concerns about financial and legal risks. The announcement by the ministry late on Tuesday follows a report by news site Observador that the 192-million-euro ($225-million) promissory contract had been signed despite due diligence warnings of "high-risk contingencies," including significant potential cost overruns and licensing problems. The central bank declined to comment on the audit on Wednesday. The Observador said it told them it used national and international best practices for rigorous control of the contract's legality and financial terms. Following the report, the junior ruling coalition partner, the conservative CDS-PP, late on Tuesday summoned Bank of Portugal Governor Mario Centeno to explain the situation before a parliamentary committee that will take place in September after the summer recess. It also asked the central bank to send the contract and due diligence studies to the committee. The centre-right government is expected at a cabinet meeting on Thursday to decide whether to reappoint or replace Centeno, a Socialist who was appointed in 2020 by a previous centre-left administration. Centeno was criticised by the political right for moving from his role as finance minister to the central bank in 2020. His detractors said the move undermined the institution's independence. The Finance Ministry said it was requesting the audit, to be carried out by its General Financial Inspectorate, "in defence of the institution (central bank) and in full respect for its independence". ($1 = 0.8524 euros)
Reuters
30-05-2025
- Business
- Reuters
Portugal's first-quarter contraction confirmed, exports fall
LISBON, May 30 (Reuters) - Portugal's economy shrank 0.5% in the first quarter from the previous three months, when it grew 1.4%, as exports fell and imports rose in anticipation of higher tariffs amid global trade tensions, official data showed on Friday, confirming the flash estimate. In its second reading of gross domestic product, the National Institute of Statistics (INE) also confirmed its year-on-year growth figure of 1.6% released at the beginning of the month. In the fourth quarter, Portugal's economy grew 2.8%. INE said the contribution of net external demand to the quarter-on-quarter GDP was minus 0.7 percentage points, while in the fourth quarter it had contributed positively with 0.7 pp, "reflecting a decline in exports and an increase in imports". Exports of goods and services, including the key tourism sector, fell 0.4% from the previous three months. Meanwhile, imports increased 1% anticipating the tariffs announced by U.S. President Donald Trump - most of which have been temporarily suspended - and a potential response from the European Union. INE said the positive contribution of domestic demand also decreased to 0.1 pp, from 0.7 pp in the fourth quarter, "with a reduction in private consumption", which fell 1.1% in the first three months after growing 2.8%. Total investment increased by 3.8% with the help of European Union funds, after it fell 5.0% in the previous quarter. The Bank of Portugal has forecast the economy should grow 2.3% this year in an acceleration from last year's 1.9%, but it said a tariff war could reduce that projected growth by 0.9 percentage points.
Straits Times
13-05-2025
- Business
- Straits Times
Bulgarian parliament rejects president's euro referendum proposal
FILE PHOTO: A worker grabs a pack of 20-euro notes at the Bank of Portugal fortified complex in Carregado, Alenquer, Portugal, May 17, 2022. Picture taken May 17, 2022. REUTERS/Pedro Nunes The speaker of the Bulgarian national assembly Nataliya Kiselova has dismissed President Rumen Radev's proposal for a national referendum on adopting the euro, saying it violated the constitution, the BTA news agency reported on Tuesday. On Monday, Radev had suggested a referendum on Bulgaria's plans to adopt the euro next year with the question: "Do you agree that Bulgaria should introduce the single European currency 'euro' in 2026?" His proposal was criticised by the government, with one minister saying it was an attempt to sabotage its efforts to join the single currency. Sending back the proposal, Kiselova said it did not comply with several articles of the Bulgarian constitution and related European Union treaties, and was inconsistent with rulings from the country's constitutional court. The constitutional court has previously rejected a petition for a referendum on joining the euro. The government aims to adopt the euro next January, pending confirmation from the European Commission and the European Central Bank in June that all membership criteria have been met. Economists say that Bulgaria, whose lev currency has long been pegged to the euro, would attract more foreign investment if it adopted the single currency and would secure credit ratings upgrades that could cut its debt financing costs. However, Bulgarians are split on the euro's adoption, with concerns that it might lead to price hikes, similar to what occurred in Croatia when it switched to the euro in 2023. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
03-04-2025
- Business
- Yahoo
Portuguese police raid public offices, including central bank, in IT-related probe
LISBON (Reuters) - Portuguese police on Thursday raided the offices of several public institutions in a corruption probe involving the acquisition of information technology services, including at the Bank of Portugal, which confirmed the searches. Police said in a statement they were carrying out 75 searches in Lisbon, Porto and Braga at homes, accounting firms, company headquarters, and public institutions, targeting employees rather than any high-ranking public officials. The Bank of Portugal confirmed in a statement it was one of the entities targeted by the searches and that it was fully collaborating with the investigation. The police said the searches were related to IT services contracts of several public entities and by a private company in 2017-2025, over suspicions of active and passive corruption, document forgery, fraud, influence peddling and other crimes. They said the targets of the investigation were "a group of individuals who, through joint efforts and in a premeditated manner, tainted dozens of public and private contracting procedures, for a global value of no less than 17 million euros ($19 million)". "These searches are intended to gather information related to employees of these services and were not aimed at political decision-makers," the police said. ($1 = 0.9050 euros)
Reuters
03-04-2025
- Business
- Reuters
Portuguese police raid public offices, including central bank, in IT-related probe
LISBON, April 3 (Reuters) - Portuguese police on Thursday raided the offices of several public institutions in a corruption probe involving the acquisition of information technology services, including at the Bank of Portugal, which confirmed the searches. Police said in a statement they were carrying out 75 searches in Lisbon, Porto and Braga at homes, accounting firms, company headquarters, and public institutions, targeting employees rather than any high-ranking public officials. The Bank of Portugal confirmed in a statement it was one of the entities targeted by the searches and that it was fully collaborating with the investigation. The police said the searches were related to IT services contracts of several public entities and by a private company in 2017-2025, over suspicions of active and passive corruption, document forgery, fraud, influence peddling and other crimes. They said the targets of the investigation were "a group of individuals who, through joint efforts and in a premeditated manner, tainted dozens of public and private contracting procedures, for a global value of no less than 17 million euros ($19 million)". "These searches are intended to gather information related to employees of these services and were not aimed at political decision-makers," the police said. ($1 = 0.9050 euros)
