Sovereign haircuts / PRT
Portugal
5 concluded restructurings, between 1834 and 1902. The earliest default they settle began in 1834. The worst cost creditors 100.0% of the present value of their claim, in 1834. The longest gap between a default and its settlement was 10 years.
Every restructuring
Two measures of the same deals, never combined. The present-value haircut discounts what creditors got against what they were owed; the face-value reduction counts only principal written off.
| Default | Settled | Years to settle | Present-value haircut | Face-value reduction | Debt treated (2020 $) | Source |
|---|---|---|---|---|---|---|
| 1834 | 1834repudiated | 0 | 100.0% | 100.0% | $801M | Meyer, Reinhart and Trebesch (2022) |
| 1837 | 1840 | 3 | 18.2% | 10.2% | $268M | Meyer, Reinhart and Trebesch (2022) |
| 1845 | 1845 | 0 | 50.5% | 0.0% | $1.32B | Meyer, Reinhart and Trebesch (2022) |
| 1848 | 1856 | 8 | 20.2% | 13.0% | $273M | Meyer, Reinhart and Trebesch (2022) |
| 1892 | 1902 | 10 | 71.2% | 50.4% | $1.61B | Meyer, Reinhart and Trebesch (2022) |
Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Debt treated is the amount restructured, deflated to constant 2020 US dollars in the source file. A negative haircut means the new instruments were worth more than the old claim. Methodology
Default spells
| Spell | From | To | Years | Restructurings |
|---|---|---|---|---|
| PRT_1834-1834 | 1834 | 1834 | 1 | 1 |
| PRT_1837-1840 | 1837 | 1840 | 4 | 1 |
| PRT_1845-1845 | 1845 | 1845 | 1 | 1 |
| PRT_1848-1856 | 1848 | 1856 | 9 | 1 |
| PRT_1892-1902 | 1892 | 1902 | 11 | 1 |
Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Duration counts both endpoints. The spells table also carries a cumulative-haircut column; it is not published here because it does not reconcile with the per-episode haircuts, see the methodology. Methodology
Debt still in default
The Bank of Canada-Bank of England default database records no debt in default for Portugal in its latest year.
Source: Bank of Canada-Bank of England Sovereign Default Database (CRAG) Bank of Canada terms (attribution). Includes domestic arrears, so it is not comparable with the debt-treated column above. Methodology