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Portuguese Builders on ’Verge of Collapse,’ Industry Group Says

Portugal’s construction sector is on the “verge of collapse” and in need of an emergency program to help restructure debt, the country’s biggest industry group said.

The construction industry owes banks about 25 billion euros ($31 billion) and insolvency risks are rising as banks cut back on loans, Ricardo Pedrosa Gomes, president of the Public Works and Construction Association said in an e-mailed statement today.

The industry needs an emergency program to promote investment and to help cut and restructure debt, according to the statement.

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