The tenacious Portugese banks have prided themselves in their ability to stick with the Angolan economy in good and bad years, but they are now facing increasing competition from foreign banks, which stress their international network credentials.

Portuguese banks have found that investment in its former colony Angola has provided growth at a time when its own domestic market is facing recession. 

Shut out of the wholesale markets, Portugal's banks are reducing their loan-to-deposit ratios and restructuring their balance sheets. If all goes well they could be back in the markets as early as next year. 

The effects of the international economic bailout of Portugal will be felt through the country, but some see the measures as an opportunity for the country to emerge as a more competitive, export-friendly entity. 

The Portuguese government has struggled to convince the international finance markets of its commitment to fiscal discipline, and this has prevented any easing of the country's funding problems and delayed economic recovery. However, deposits are bouncing back and industry is managing to maintain investment. Writer Peter Wise

A €6bn privatisation initiative ushered in by the Portuguese government as part of a package of spending cuts could prove fertile for the country's investment banks and breathe new life into its capital markets. Writer Peter Wise

The trials and tribulations of the Greek economy have caused a few nervous glances to be cast in the direction of Portugal, with some observers worried that the country could face a similar debt crisis. However, the Portuguese government's late budget and four-year austerity programme have gone a long way to allaying such fears. Writer Peter Wise

Portugal's traditionally cautious approach to banking with a strong leaning towards public investment is being recognised by other countries as an effective, if temporary, approach during the current downturn. Writer Peter Wise