Portugal: Portuguese government plans to privatise state companies Galp and TAP in 2009

16 October 2008

Lisbon, Portugal, 16 Oct – The Portuguese government plans to net 1.2 billion euros from the privatisation, in 2009, of large state companies, such as oil company Galp, airline TAP, airport management company ANA and paper company INAPA, officials said.

According to the State Budget Proposal for 2009 the Portuguese government projects that 80 percent (960 million euros) of the amount will be to reduce State debt The remaining 20 percent will be used for capital increase operations.

The privatisation of Galp Energia, which was announced on 31 July, was expected to take place this year. However, due to adverse market conditions, the goevrnment opted to wait.

“The privatisation should take place in 2009, without, however affecting the State’s debt ratios. The ratio should fall, this year, to 63.5 percent. However, next year, and despite the privatisations scheduled for 2009, the debt ratio is likely to increase again,” financial newspaper Jornal de Negócios reported. (macauhub)