Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Search of Air Algerie crash site continues

Read more

MEDIAWATCH

Sarkozy, Hollande and the scooter wars

Read more

MEDIAWATCH

Confusion online over Air Algérie flight

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

REPORTERS

Halal tourism on the rise

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

FRANCE IN FOCUS

WWI Centenary: the battle for Verdun

Read more

THE BUSINESS INTERVIEW

When big companies want to do good

Read more

  • In pictures: Debris and devastation at Air Algérie Flight AH5017 crash scene

    Read more

  • Kerry heads to Paris for new round of Gaza peace talks

    Read more

  • Video: No investigation apparent at site of downed Malaysian plane

    Read more

  • Washington Post correspondent and his wife arrested in Iran

    Read more

  • Paris bans new Gaza protest scheduled for Saturday

    Read more

  • Tour de France fans bring the ambience to the Pyrenees

    Read more

  • French families grieve for Algerian plane crash victims

    Read more

  • Protest against Gaza offensive turns deadly in West Bank

    Read more

  • Halal tourism on the rise

    Read more

  • LA Times wipes France off the map in air crash infographic

    Read more

  • Lithuania’s Navardauskas wins 19th stage of Tour de France

    Read more

  • French lawyer files complaint against Israel at ICC

    Read more

  • Ukraine names acting PM after Yatseniuk's shock resignation

    Read more

  • BNP to pay $80 million for defrauding Dept of Agriculture

    Read more

  • Deadly strike on UN shelter in Gaza Strip

    Read more

  • Pope meets Christian woman sentenced to death in Sudan

    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)