IMF approves $36.8 bn loan for Portugal
May 22nd, 2011 - 2:27 pm ICT by IANSWashington, May 22 (IANS/RIA Novosti) The International Monetary Fund (IMF) has approved a 26 billion euro ($36.8 billion) loan for Portugal to help the country overcome its debt crisis.
The Washington-based institution said it would immediately pay out 6.1 billion euro to ease investor concerns.
“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,” the IMF said in a statement Saturday.
The loan is part of a joint 78 billion euro ($110 billion) rescue package with the European Union.
“The Portuguese authorities have put forward a programme that is economically well-balanced and has growth and job creation at its centre,” IMF acting managing director John Lipsky said.
“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.”
Under the deal, Portugal will cut spending, raise taxes, as well as reform its labour and justice systems and implement a privatisation programme.
Portugal is the third European Union country to receive a multi-billion EU/IMF bailout, following Greece in May last year and Ireland in November.
–IANS/RIA Novosti
pm
- IMF approves $36 bn funding for Greece - Mar 16, 2012
- Greece to receive new IMF aid in July: French PM - Jun 22, 2011
- Greek government survives trust vote - Jun 22, 2011
- G8 approves $20 bn loan for Egypt, Tunisia - May 27, 2011
- IMF lends Ireland $2.1 bn in bailout package - Sep 03, 2011
- IMF approves another bailout tranche for Greece - Dec 06, 2011
- Euro falters over Italy, Greece political uncertainty - Nov 09, 2011
- G8 wants Greece to remain in Eurozone (Lead) - May 20, 2012
- EU urges Greece to reaffirm reform commitment - Nov 08, 2011
- Belarus seeks IMF loan of up to $7 bn - Oct 16, 2011
- Greek PM resigns; polls set for February - Nov 07, 2011
- Greece votes in parliamentary elections (Lead) - May 06, 2012
- Europe agrees to 1 trillion euro fund for new bailout plan - Oct 27, 2011
- Belgian wins 15 mn euros in lottery - Sep 17, 2011
- Greeks vote in crucial parliamentary election - May 06, 2012
Tags: 1 billion, breathing space, competitiveness, debt crisis, director john, european union country, financial sector, fiscal consolidation, fundamental problem, imf bailout, international monetary fund, international monetary fund imf, investor concerns, job creation, john lipsky, justice systems, managing director, portuguese authorities, privatisation, ria novosti