Portugal to move €1bn from fund

The Portuguese government plans to increase the amount of money it will transfer from the pension fund of a state-owned bank to the general fund for public employees to keep its budget deficit under 3% of gross domestic product.

The government plans to transfer €1 billion ($1.3bn) from the pension fund of lender Caixa Geral de Depositos to help reduce the deficit, Finance Minister Antonio Bagao Felix said at a press conference at the ministry in Lisbon.

Caixa Geral Chairman Vitor Martins initially presented his resignation in protest at the decision but agreed to stay on after an appeal to his “patriotic spirit”, Bagao Felix said.