Massive Use of Fomento Bank's Financial Instruments Poses Budget Risk (eco.sapo.pt)

• PRR monitoring commission warns of budget risks from financial instruments.
• Banco de Fomento's IFIC and similar instruments may create contingent liabilities.
• The risk is diffuse and deferred, posing long-term fiscal challenges.

"The National Commission for Monitoring the PRR warns that the widespread use of financial instruments like the IFIC by Banco de Fomento could create a diffuse and deferred budget risk for the Portuguese state. According to the commission, the expansion of these instruments lacks adequate risk assessment and may lead to contingent liabilities that only materialize in the medium term. The warning comes as Portugal accelerates implementation of its Recovery and Resilience Plan."