Moody's banned from Madeira

The rating agency Moody's is barred from entering public administration in Madeira, stated President Jardim on the 7th of July, at a public ceremony, after Moody's attributed Madeira a B1 rating. The Regional Government has seen its rating drop from Aa3, in July 2010, to A2 in December 2010, to Baa2 in March 2011, to Baa3 in April and now to B1. The level of Government debt has worried opposition parties for many years, but apparently is only now being acknowledged by the rating agencies. The Regional Government is unable to pay suppliers and is in danger of defaulting to banks. The large-scale public construction projects  - the emblem of the 35-year-old Jardim regime - have come to a halt, with banks refusing to take further risks. The Barreiros football stadium is one example. Already in February, faced with difficulties in obtaining further bank financing, Jardim called on the business community to give the banks a 'scare'. 'Its up to you to distinguish which are the financial companies still willing to collaborate with the economy and which are those who are unwilling.' He had previously threatened to announce which banks were not being cooperative with the Regional Government. Most banks remain unmoved by Jardim's  (tongue) muscle-flexing.