Press "Enter" to skip to content

Liberal Initiative: Madeira Has Almost Gone Bankrupt 4 Times

We can tell that the election season is underway as the island’s political parties are all out to discredit their rivals.  Not only have we had the PSD forgetting to use their coalition partners’ logos on their advertising material.  It was just a lapse, and the posters weren’t going to be around long enough for anyone to notice – anyway!-. Then today we have the Liberal Initiative Party (IL) stepping into the breach and reminding everyone of Madeira’s precarious financial position.

In their statement, the Madeira Liberal Initiative (IL) reminded everyone that “Madeira has almost gone bankrupt four times” since the mid-1980s. Something, says the Liberal Initiative Party, that politicians like to talk about every so often while sipping whiskey and soda, while others like the IL believe that we should never forget how close the island has come to financial ruin.

“On 26 February 1986, the ‘Financial Rebalancing Programme of the Autonomous Region of Madeira’ entered into force. Prime Minister Anibal Cavaco Silva was Prime Minister authorised a bailout loan of  394 million euros (in current values, 22 million escudos in values of the time) was authorised for the region.

“It didn’t take long for the regional debt to burst again,” since, stated Nuno Morna (IL).  On  the 22nd of September 1989, we reached out to Lisbon with an outstretched hand for a new ‘Financial Recovery Programme of the Autonomous Region of Madeira.’ A programme that lasted until the 31st of December 1989 and agreed upon by Cavaco Silva in Lisbon and Alberto João Jardim in Madeira.

However, “in 1998 the PSD Regional Government was very fortunate: as 75% of their total debt was written off by the Government of the Republic to the tune of 110 million escudos by Prime Minister António Guterres. This according to Nuno Morna equates to 824 million euros and approximately 25% of the current Regional Budget.

Finally, the icing on the cake is the hidden debt of the ‘Autonomous Region of Madeira Economic and Financial Adjustment Programme dated 27th of January 2012, which aims to regulate a debt of more than 6 billion euros.

This says Nuno Morna cannot be allowed to happen again and this is why, in his opinion, it is time for political change.

Samantha Gannon

info at

Mission News Theme by Compete Themes.
Madeira Weekly