Portugal will reimburse another 800 million euros to IMF with a lower rate

The State Secretary of Finance announced in the Eurogroup, in Brussels, that Portugal will make an early repayment of 800 million euros to the International Monetary Fund (IMF), therefore concluding the most expensive tranche of the loan to the institution.

“I had the opportunity to inform my coworkers that Portugal will pay the 800 million euros of IMF’s loan that correspond to the final part of what was authorized, but also of what the loan was in less favorable conditions”, Ricardo Mourinho Félix announced in statements given to journalists after the first Eurogroup meeting headed by Mário Centeno.

The Portuguese State Secretary, who now represents Portugal in the meetings of the forum of Finance ministers of the Euro Area, clarified that this payment — which should occur this week — “concluded the permission that had been granted and which would allow Portugal to move forward with the repayment of what was the most expensive tranche of IMF’s loan”, within the framework of the financial aid granted to Portugal.

“That is what we conclude now: the payment of that more expensive tranche”, he stated, highlighting that there are still 4.5 billion euros of IMF’s loan to be repaid, “but at a much lower rate“.

According to the State secretary, this repayment is a “landmark” in the sense that the country still has loans from European institutions and IMF, but in the case of the latter, “the rate is much smaller”, which is “important for the soundness of public accounts”, benefiting from “the fiscal consolidation and public debt reduction”.

“From now on, the management will be made by always comparing the cost of debt to these institutions and what is the cost of getting financing in the market“, Mourinho Félix stated.

Concerning the European Commission’s presentation of the conclusions from the seventh post-programme monitoring mission to Portugal, Mourinho Félix stated “it was quite well received by institutions”.