Portugal Hints at Deficit Revision

LISBON—Portugal’s statistics agency said it plans to make “accounting changes” in a report to be submitted to the European Union’s statistics agency by week’s end, a revision that could indicate a wider 2010 budget deficit and which would further undermine the credibility of the country’s embattled government.

The country’s statistics office has been reviewing its 2010 accounts after the EU’s Eurostat agency observed that Portugal hadn’t included a €2 billion ($2.8 billion) cash injection into Banco Portugues de Negocios.

A spokeswoman from Portugal’s statistics agency confirmed Tuesday that “a new set of accounting changes” will be made in a report to Eurostat. The EU agency will then publish the amended bookkeeping next month.‬

A revision showing a wider deficit could imperil Portugal’s effort to assure investors that it can continue to finance itself without joining Greece and Ireland in asking for a bailout from the EU and the International Monetary Fund.

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