As of Spring of 2010, Portugal has been dealing with a sovereign debt crisis, much like several other European countries. As with Greece, Portugal has faced a heavy debt burden and high interest rates caused by similar spending and property bubbles. Portugal, however, tried to launch three sets of austerity measures to stave off a recession.
Unfortunately, those measures were not successful and in May of 2011 the country received a bail-out loan from the International Monterey Fund (IMF)/European Union. There were many negative implications to the recession in Portugal: the resignation of Prime Minister Sócrates, defeated while trying for a fourth round of austerity measures; and S&P cut the debt rating of Portugal to “junk” status.
But here’s the kicker: unlike many other European countries who were forced to install tough austerity measures, rioting has been absent in Portugal. This is a mark of political and economic stability and maturity that, despite the very evident flubs that brought the country to its knees, has brought renewed hope to private equity investors such as Capital Corp. So today’s news is that Capital Corp is now once again actively reviewing and accepting project proposals and middle-market deals coming from Portugal.