Portugal starts early repayment of IMF loan

23 January 2015

Portugal will start the early repayment of its loan from the International Monetary Fund (IMF) provided during the country’s financial bailout, the Minister of Finance said Wednesday in parliament.

Maria Luís Albuquerque, speaking to the Budget, Finance and Public Administration Commission, said the state had accumulated “a very significant amount of cash reserves” allowing it to face potential future difficulties “with ease.”

Therefore, and taking into account what Albuquerque said was a “normalisation of the market access situation,” Portugal “is in a position and will start the necessary procedures for early repayment to the IMF.”

According to the direct debt repayment schedule Portugal will begin to repay the amount borrowed from the IMF in 2015 and is due to pay back 500 million euros of a total of 26.91 billion in aid from the IMF.

This announcement allowed Portugal to issue short-term debt when interest rates applied by lenders have hit historic lows.

Official figures show that the state paid 0.108% to issue to debt of 300 million euros for six months and 0.22% to finance 940 million euros through 12-month Treasury Bonds. (macauhub/PT)