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Country Commercial Guides for FY 2000: Portugal Report prepared by U.S. Embassy Lisbon, released July 1999 Note*

VIII. TRADE AND PROJECT FINANCING

BRIEF DESCRIPTION OF BANKING SYSTEM

In the aftermath of the Revolution of 1974, most of the country's banking system was nationalized. However, Portugal's accession to the EC, in 1986, prompted a series of policy measures which liberalized the sector. As a result, the government's share of total shareholder equity in the banking system declined from 90% to 30% in the ten years after joining the EU. The only major financial institution which remains in government hands is Caixa Geral de Depositos (CGD). Five banking groups dominate Portugal's banking sector. Nevertheless, Portuguese banks remain relatively small by European standards and the next few years could witness considerable cross-border integration within the EU. Efforts by the Portuguese government to limit Spanish ownership in the Champalimaud group of banks has prompted criticism from the European Union.

Foreign businessmen should find the Portuguese banking system to be similar to those in the U.S. or other Western European countries. Portugal has transposed into national law key EU financial Directives covering banking coordination (the "community passport"), auditing on a consolidated basis, capital structure, solvency, and money-laundering. A deposit guarantee fund is in place and the Fund's resources stood at PTE 52 billion (USD 350 million) at the end of 1995. In June 1995, deposit guarantees were extended to include deposits taken by Portuguese banks in other EU countries. Banks' shares trade freely on the stock exchange.

GENERAL FINANCING AVAILABILITY

Short-term and medium-term financing are readily available. Overdrafts are the most common source of short-term finance for corporations. The issuance of commercial paper began in 1993 and has grown rapidly. The placement of bonds by corporations is the preferred medium-term financing instrument. Intercompany borrowing is also common.

EXPORT FINANCE/METHODS OF PAYMENT

Bankers acceptances and supplier credit are commonly used to finance international trade. Most international trade is handled by commercial banks. Both Exim-Bank and OPIC programs are available in Portugal, but are little used because commercial credit is widely available and political risks are not perceived to be high. Project financing from multilateral institutions such as the World Bank (IBRD) and the European Investment Bank (EIB) are available. Commercial banks also offer project financing.

PROJECT FINANCING

Contractors may be required to bring financing proposals for major projects bids on a case-by-case basis although generally the Government finances the project. Project financing is available for a wide variety of projects ranging from bridges to gas pipeline construction.

LIST OF COMMERCIAL BANKS

Banco Comercial Português, SA
Rua Augusta 62/74
1100 Lisbon, Portugal
Tel: (351-1) 342 73 81
Fax: (351-1) 342 16 77

Banco Borges & Irmao (Grupo BPI)
Praca do Municipio, 31
1100 Lisbon, Portugal
Tel: (351-1) 322 65 00
Fax: (351-1)

Banco Espirito Santo
Av. da Liberdade, 195
1250 Lisbon, Portugal
Tel: (351-1) 315 83 31
Fax: (351-1) 350 89 15

Banco Essi, SA
Torre 3, Tierno Galvan 14
1070 Lisbon, Portugal
Tel: (351-1) 380 85 00
Fax: (351-1) 388 82 59

Banco Finantia, SA
Rua Gen. Firmino Mig, 5, 1
1600 Lisbon, Portugal
Tel: (351-1) 720 20 00
Fax: (351-1) 726 53 10

Banco Finibanco
Av. Berna, 10
1050 Lisbon, Portugal
Tel: (351-1) 790 28 00
Fax: (351-1) 790 28 01

Banco Fonsecas & Burnay SA (Grupo BPI)
Praca do Comercio, 132
1100 Lisbon, Portugal
Tel: (351-1) 321 37 00

Banco Internacional de Credito
Av. Fontes Pereira de Melo, 27
1050 Lisbon, Portugal
Tel: (351-1) 311 55 55
Fax: (351-1) 314 61 65

Banco Internacional do Funchal
Av. Jose Malhoa, 1792
1070 Lisbon, Portugal
Tel: (351-1) 721 12 00
Fax: (351-1) 721 12 01

Banco Mello Comercial
Av. Jose Malhoa, 1682
1070 Lisbon, Portugal
Tel: (351-1) 720 15 00
Fax: (351-1) 720 17 66

Banco Nacional Ultramarino
Av. 5 de Outoubro, 175
1050 Lisbon, Portugal
Tel: (351-1) 791 80 00
Fax: (351-1)

Banco Pinto & Sotto Mayor
Rua do Ouro, 28-3
1100 Lisbon, Portugal
Tel: (351-1) 347 62 61
Fax: (351-1) 342 70 78

Banco Portugues do Atlantico
Rua Augusta, 84
1100 Lisbon, Portugal
Tel: (351-1) 321 10 00
Fax: (351-1) 422 44 59

Banco Santander Portugal
Praça Marques de Pombal, 2
1250 Lisbon, Portugal
Tel: (351-1) 310 70 00
Fax: (351-1) 310 72 34

Banco Totta & Acores
Rua do Ouro, 88-2
1100 Lisbon, Portugal
Tel: (351-1) 321 15 00
Fax: (351-1) 321 31 80/1

Barclays Bank PLC

Av. da Republica, 50-2
1000 Lisbon, Portugal
Tel: (351-1) 793 50 20
Fax: (351-1) 797 96 10

Caixa Geral de Depósitos
Lg. do Calhariz
1100 Lisbon, Portugal
Tel: (351-1) 346 03 51
Fax: (351-1) 342 13 06