Wednesday, February 11, 2015

Portugal to repay 14 billion euros of IMF debt earlier

Portugal is planning to repay its 14 billion euros (about $16 billion) of debt it owed to the International Monatery Fund (IMF) earlier, Portuguese Lusa News Agency reported on Tuesday...

Portugal plans to pay off the debt in up to two-and-a-half years. The government's proposal will be discussed at a Eurogroup meeting next Monday.

Portuguese finance minister Maria Luis Albuquerque last month announced that Portugal would follow Ireland in making a repayment to the IMF, taking advantage of low borrowing costs for European peripheral governments.

Albuquerque pointed out that Portugal's ability to do this was because it had "accumulated a very significant liquidity buffer," and because the country had managed to sell long-term bonds.

  • On Jan. 13, the debt-laden country sold 5.5 billion euros in bonds including 2 billion euros of 30-year debt.
In May 2011, Portugal signed a 78-billion-euro bailout program with the troika - European Commission, the IMF and the European Central Bank - when it was on the verge of bankruptcy, and successfully exited that program in May of last year.

The IMF lent Portugal 26.9 billion euros, which carried a 3.7-percent tax rate and an average loan maturity of seven years.

 Source:Xinhua
[globaltimes.cn ]
11/2/15
***Photo: jn.pt
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