Lisbon Square started the session up 0,44%, to 4.260,09 points on Monday morning, following the trend of most of its European counterparts.
Fear of a financial crisis, in addition to the inevitable recession caused by Covid-19, led central banks to inject liquidity into the system, in gigantic doses of asset purchases. Revenue is working, but the 'Quantitative Easing' addiction can result in a hangover, and while inflation is unlikely to accelerate, the truth is that central banks bought more risk and created a mountain of debt that one day will have to be paid, warn economists consulted by JE.
In the next two days, until Tuesday, the Prime Minister, António Costa, will have a series of meetings with the various political parties to discuss the economic and social stabilization program, in order to ascertain its impact on the Budget.
The rating agency says that provisions in Portuguese banking due to Covid-19 could be higher and considers the increase in bad debts “very likely”. Replacing the capital pillows will be a “great challenge”.
The first principle is that for the same activity there must be the same regulation, defend banks, regulators and even fintechs.
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