The report prepared by the Bank's Economic Department discusses whether Portugal would be a good candidate for World Bank loans and if it is sufficiently creditworthy.
The report prepared by Herbert W. Robinson of the Bank's Economic Department examines the creditworthiness of Portugal and discusses whether or not the World Bank should invest in the country. The report finds that although Portugal has a few unfavorable economic and financial issues, they are in a much more favorable position when compared to other European countries. Portugal has substantial payment surpluses and low foreign debt. The country does have a balance of payments deficit, but this is due to events like poor recent harvests and a decreased demand for luxury products in Europe. The country has tried to raise its standard of living through investment in hydro-electric power, modernization, and industrial development. Portugal applied for aid from the European Recovery Program (ERP) in 1949-1950, but the Economic Cooperation Administration (ECA), the U.S. government agency in charge of the program's administration, determined that the proposed projects might be better suited for World Bank consideration. The report also found that development projects in the Portuguese colonial empire would be in line with the Bank's interest in colonial development in Africa.
The report contains a study on the Portuguese empire and potential Bank investment and conditions that might render Portugal uncreditworthy.
March 22, 1949
The minutes contain the Staff Loan Committee's discussion on Portugal (30043600).