The Irish debt crisis has been overblown and the market should focus its attention on Portugal which is in a far worse predicament, according to BlackRock’s Alister Hibbert.
The European equity manager (pictured above) believes media coverage of the Irish debt problem is detracting from what should be Europe’s main concern – Portugal.
‘The issues facing Portugal are significantly worse concerning their government debt,’ said the Citywire AAA-rated manager of the European Dynamic fund. ‘The measures that Portugal is taking to restructure its budget deficit are far too little.’
The Iberian country’s problems could also be a lot more drawn out, as Portugal has not been able to reset its economy – unlike Ireland.