Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Provocative sculpture "unplugged"

Read more

THE OBSERVERS

'Flying coffins' in Ivory Coast and a rich Maltese couple rescuing migrants

Read more

FOCUS

London now the world's most expensive city

Read more

WEB NEWS

USA: Ebola Halloween costumes spark outrage online

Read more

IN THE PAPERS

Jokowi: 'A new hope' for Indonesia

Read more

IN THE PAPERS

Christophe de Margerie, a jovial and strategic boss

Read more

AFRICA NEWS

Exiled family returns to Somaliland

Read more

DEBATE

Whose boots on the ground? Turkey wary of Syrian Kurds (part 2)

Read more

DEBATE

Whose boots on the ground? Turkey wary of Syrian Kurds

Read more

Europe

IMF approves €26 billion loan for Portugal

Text by News Wires

Latest update : 2011-05-20

The International Monetary Fund has approved a $26 billion three-year-loan for Portugal, part of which will be made readily available to help calm market fears over the struggling eurozone country's debts.

AFP - The International Monetary Fund on Friday approved a 26-billion-euro ($36.9 billion) three-year loan to Portugal as part of a European Union bailout of the struggling eurozone country.

The "front-loaded" program makes about 6.1 billion euros "immediately available to Portugal" from the IMF, the Washington-based institution said in a statement.

"The financing package is designed to allow Portugal some breathing space from borrowing in the markets while it demonstrates implementation of the policy steps needed to get the economy back on track," it said.

The loan is part of a three-year, 78-billion-euro EU-IMF bailout for Portugal unanimously agreed by EU finance ministers on Monday.

The money comes with the condition that Lisbon embarks on a major raft of public sell-offs.

Portgual becomes the third eurozone country in a year to receive a multi-billion-euro EU-IMF bailout, after Greece and Ireland.

The loan the IMF executive board approved Friday is an Extended Fund Facility, aimed at supporting the Portuguese authorities' economic adjustment and growth program, the IMF said.

"The Portuguese authorities have put forward a program that is economically well-balanced and has growth and job creation at its center," IMF acting managing director John Lipsky said in the statement.

"It addresses the fundamental problem in Portugal -- low growth -- with a policy mix based on restoring competitiveness through structural reforms, ensuring a balanced fiscal consolidation path, and stabilizing the financial sector."

The IMF said the loan won fast-track emergency approval and entails "exceptional access" to IMF resources.

For all of 2011, total IMF financing for Portugal will amount to 12.6 billion euros and will be partnered with the EU's commitment of 25.2 billion euros.
 

Date created : 2011-05-21

  • ECONOMY

    Europe tackles Portugal bailout despite IMF chief arrest

    Read more

  • ECONOMY

    Is the bailout a 'good deal' for Portugal?

    Read more

  • EUROZONE

    Portugal reaches deal on bailout with EU and IMF

    Read more

COMMENT(S)