Portugal already has a plan to reduce debt by 39%

The study does not raise pardons but postponement of payments and interest reduction

Portugal can reduce its debt from the current 130.7% to 91.7% if payments are postponed to 60 years and interest is reduced to 1%. The plan is not of the Government, reluctant to any unilateral initiative, but its socialist party and the Left Block, which supports it in parliament.

The Government does not want to hear about debt restructuring, but it nevertheless gave permission to set up a parliamentary committee to study a reduction plan. It was not his initiative, but a demand of the Left Bloc in exchange for giving him parliamentary support for the entire legislature. After a year of meetings, the plan is completed and sent to the Government.

In short, the study to restructure debt is based on not touching the debt that affects private funds and the IMF. For the rest, payments would be extended from the current average 15.6 years to 60, and interest rates would fall from the current 2.4% on average to 1%.

Apart from the measures that depend on negotiations with third parties, the working group presents four that are of full power of the Government: a reduction of the provisions of the Bank of Portugal, which the Government considers excessive and with which the State would have more annual dividends ; An advance payment to the IMF, which has the highest interest loans; The optimization of state deposits and the reduction of the average duration of debt issued. Altogether, the application of these measures would save the state 451 million this year (0.20% of GDP) and 2,788 million in 2022.

To conciliate the speeches of the ruling socialist party and the vociferous Left Bloc (NATO exit, debt forgiveness …), the language of study measures every word; For that reason it is not a plan, but “merely an example of the type of restructuring that would be possible”, but also warns that to continue with the current level of debt will have to increase taxes or reduce social services.

The plan would only be activated in a joint negotiation within the European Union

By virtue of this balance between the different forces that make up the working group, at no time does the debt forgiveness of part of the debt be considered, “nor would it be a breach, but would be done in agreement with the European partners.”

Reactions to the plan have not been delayed. The Government completely disassociates itself from it, although its deputies by have participated to the undersecretary of finance, and the PC, the other party that supports the Government in Parliament, calls it “micropopuestas”, with solutions “equal to others” Do not respond to the “deep problems”, according to deputy Paulo Sá. Reactions expected, because the PC was not going to applaud an idea of ​​the Left Block, its electoral competition.

An exhibition in New York shows the dark side of American finance

Through newspapers and historical documents, the museum offers visitors a first-hand experience of the ins and outs of some of the history scandals.

Deluxe scammers and the biggest white-glove criminals in US history today star in the Scandal! At the Museum of American Finance in New York, which reviews the darker face of the financial world of this country.

Through newspapers and historical documents, the museum offers visitors first-hand insight into the ins and outs of some of the most shocking financial scandals in American society, from the first crack of the New York Stock Exchange to the Bankruptcy of Enron. All the characters in the exhibition have played tragic chapters of the US economy, mixing elements of greed and corruption typical of film productions that have undermined investor confidence.

Among the “illustrious” protagonists of the show are Bernard Madoff, who is serving 150 years in prison for committing one of the biggest scams in history, or William Duer (1743-1799), former Treasury Secretary and one of Who were responsible for the first Wall Street crisis in 1792. Duer, the forerunner of the financial picaresque in the United States, created a system to speculate with government funds and reached such a magnitude that, when the scam was uncovered, he was imprisoned and New Yorkers arrived To surround the prison to the cry of “we will take to Duer, he took our money”.

Leena Akhtar, director of exhibitions and archives at the museum, said today that the latest financial scandals have been a challenge for the institution since most of the material available is virtual, such as emails or electronic transactions. Akhtar explained that to portray the Lehman Brothers scandal the museum counted on the donation by its creator of the statuettes with which the investment bank rewarded the employees who participated in great economic agreements, before declaring itself bankrupt on the 15th Of September 2008 and thus precipitate a crisis that made the financial system tremble all over the world.

Madoff’s personal objects

In addition to these figurines, the exhibition has other curious objects among which stand out different personal objects of financier Madoff, like a baseball bat that has inscribed the name of the investment firm with which he swindled thousands of people, or some balls Golf and other sports equipment.
Nor could the fraudster who gave name to the famous “Ponzi scheme” the system he used to defraud both Madoff and thousands more financiers in the history of this country. Charles Ponzi, an Italian immigrant from Ravenna who settled in Boston in 1911, took his greatest blow in 1919 after discovering that he could get a fortune by trading in the coupons his compatriots sent by letter from the United States to relatives in Italy.

Thus, Ponzi initiated a pyramid scheme of scam similar to the one that later used Madoff, that was to distribute coupons between the poor immigrant families promising a profits of the 50 percent that materialized thanks to the money that new investors gave to him. Even the most scandalous case was “Scandal Oil” (1963) in which Allied Crude Vegetable Oil obtained numerous loans, making banks believe that their ships carried oil, when in fact they only carried water with a minimum proportion of fat.

The small amount of oil that carried the tanks and floated in the water managed to deceive the inspectors who inspected the boats and caused losses of more than 150 million dollars to companies like American Express or Bank of America, who had granted loans. With its extensive review of these and other scandals, which can be visited for a whole year, the New York museum allows to understand that recent scandals that have grabbed the front pages of newspapers around the world are not a novelty in the financial world.