Portugal granted newest bailout package in exchange for reform

THE INTERNATIONAL Monetary Fund (IMF) approved the latest instalment of emergency funding yesterday, extending €657m (£558m) to Portugal.

Overall, the country is due to receive €26bn from the joint IMF-EU venture, which is subject to a number of economic adjustments.

The IMF said that the Portuguese government had made progress in stabilising its finances and reforming the economy, but added: “given the still sizable risks to the outlook, the authorities need to sustain the reform effort to improve competitiveness”.

Portugal’s budget deficit reduction targets were eased earlier in the year, but the IMF ruled out any further changes to the current goals.

Nemat Sharik, deputy managing director, said “scope for deviating further from the revised deficit path is limited”.