Portugal Gave Back 22 Percent of Its Bailout Debt

Portugal Gave Back 22 Percent of Its Bailout Debt

Portugal reimbursed EUR 6.6 billion as part of repaying its bailout loans. This amounts to 22 percent of Portugal's bailout debt secured partly by IMF. The reimbursement took place in the past few weeks thanks to record-low bond yields, said the IGCP state agency.

As previously said, a third of the loan is provided by the International Monetary Fund (IMF) and the loan sums up to EUR 78 billion which Portugal obtained in 2011 and discontinued its use last year. The interest rate of the IMF debt is 3.5 percent. Portugal managed to pay off a part of the loan when yields sharply fell. The country issued 10-year bonds last month at just over 2 percent. The yield has so far fallen about to about 1.7 percent in the secondary market.

Portugal was allowed by the European Union, one of the lenders, to pay back the IMF early what it owed, namely EUR 14 billion. The period of the payment was set at two and a half years. Portugal is not the first country to receive a bailout fund from the EU and the IMF – Ireland took this opportunity before Portugal.

According to Portuguese Finance Minister Maria Luis Albuquerque, Portugal will take advantage of low yields and rush with repaying the debt as the time progressed. Portugal now “has its coffers full, and if anything happens around us that would disturb the market's normal functioning, we can be calm for a long period without having to go to the market and still meet all our commitments”.
 

Hot NewsGET THE HOTTEST

Kushner No Longer Number One Trump Advisor

Kushner No Longer Number One Trump Advisor

Jared Kushner has been a key figure in the Trump administration. His portfolio as the president’s advisor had him play a pivotal role in the administration’s foreign policy. Top among his successes include liaising with Mexico and brokering the Middle East peace deal. As an advisor,…

CONTINUE READING

N. Korea sending Syria material for chemical warfare.

N. Korea sending Syria material for chemical warfare.

In an alarming report from CNN, North Korea has been sending Syria “acid-resistant tiles, valves and thermometers” – all of which could be used for chemical weapons. This information was contained in a report by a United Nations panel of experts and relayed by an unnamed diplomat…

CONTINUE READING

Latest News FROM OUR DESK

Is Mariah Carey contemplating marriage again?

Is Mariah Carey contemplating marriage again?

Mariah Carey, 46, is very excited to be married to her current billionaire boyfriend James Packer, 48. This would be a third marriage for her. Her last husband was singer, actor, celebrity host Nick Cannon to whom she was married for six years and had two children. Mariah discussed her upcoming…

CONTINUE READING

Nicolas Cage and wife separate

Nicolas Cage and wife separate

Nicolas Cage and his wife, Alice Kim, ended their whirlwind romance after 11 years. Their story was one out of a fairytale novel. He met her at a restaurant where she was a waitress and hardly two months later, he put a ring on her finger. They were soon married at a ranch in Northern California in…

CONTINUE READING