Portugal's first-quarter budget deficit above 10%

Portugal's budget deficit reached 10.6 per cent ofgross domestic product in the first quarter, up from 7.9 per cent inthe first quarter of 2012 and far above this year's target of 5.5 percent, statistics body INE said Friday according to dpa. The deficit was swollen by the recapitalization of Banif bank for700 million euros (912 million dollars), INE said. The move was aimedat making Portugal's eighth-largest bank meet minimum capitalrequirements under the country's international bailout programme. Finance Minister Vitor Gaspar said earlier that a deficit of morethan 10 per cent in the first quarter would not prevent Portugal frommeeting this year's target of 5.5 per cent. In 2012, the deficit stood at 6.4 per cent.