LISBON, Portugal (AP) — Portugal's prime minister says he wants his bailed-out country's banks to be given more leeway to meet their capital requirements because an acute credit crunch is dooming viable companies. Austerity measures introduced in return for a €78 billion ($103 billion) bailout last year are already choking Portugal's economy. On top of that, the bailout terms require Portugal's banks to improve their reserve cushion of high-quality capital to help them weather the country's debt crisis. That has compelled them to reduce the number of loans they grant. Prime Minister Pedro Passos Coelho said in published comments Friday that the lack of credit is hurting export companies. He told weekly newspaper Sol he wants bailout lenders to ease the financial constraints on banks. |