Portugal will make a 1,000 million euros’ reimbursement to IMF by the end of the year

  • ECO News
  • 12 December 2017

IGCP wants to return another 1,000 million euros to IMF over the next three weeks, taking advantage of the decrease in interests, elevating to ten billion euros the total amount reimbursed in 2017.

The Portuguese Debt Management Agency, IGCP, intends to return in advance another 1,000 million euros to the institution over the next three weeks. In 2017, the total amount that was returned to the International Monetary Fund will have ascended to ten billion euros.

This intention to pay one more tranche of the loan to IMF was brought up in a presentation from the agency headed by Cristina Casalinho to international investors.

Right now, Portugal must still pay 24% of the 26 billion euros’ bailout from Washington to the country in 2011, which is equal to 6.3 billion euros. But with this reimbursement, Portugal will have to pay around 5.3 billion euros to the Fund.

With this new strategy, the Portuguese Government hopes to gain from the reduction of the cost of debt in two ways: firstly, by replacing the more expensive loan to the Fund with a new debt issuance in the market at much more favorable rates; and then, because the exposure to the Fund decreased, interests charged from the debt left to be paid to IMF will also suffer a relief.