The Finance Minister today considered the possibility of Portugal anticipate the payment of the first tranche of the IMF loan as “an option that has value,” stressing that this does not mean you want to do just a full refund.
“We are interested in supporting the Irish in that this possibility exists, of course, is an option that has value. Nor does it mean that the logo we wanted to repay 25 billion, we could begin by the first tranches that were more expensive in terms of our access to the market, is an option that has value and clearly on the side of the Irish will be supporting this initiative in Europe, “said Maria Luis Albuquerque.
The Finance Minister was responding to a question from students in the Summer University of the PSD, which runs from Castelo de Vide until Sunday, and explained, however, that the advance payment of the IMF loan requires authorization Europe, as European lenders have the right to demand the same as their repayments are anticipated.
For reminded when the contracts were signed it was agreed that there would be “a clause called the step by step”, ie, that IMF loans were repaid before the deadline, European lenders would have the right to demand the same.
In the Portuguese case, this would mean that the state would return the nearly € 76 billion program, instead of only € 25 billion to the IMF.
So, he said, which will be discussed at next week’s Eurogroup meeting is “whether Europeans forego this right step by step and say ‘accept first to repay the IMF without reimburse to us ‘”.
The finance minister cautioned, however, that the Portuguese situation is different from the Irish, since Ireland had loans sooner, were more expensive, the country has a financial market that is cheaper and a profile of different amortizations.
On the other hand, he continued, the ability of Portugal to fetch the money market at lower rates is not “infinite” and that “it is not an unlimited resource.”
“Do not just say now I will return this money more expensive for this money that is market, because the market is not there to give us the money we want at the price we want,” he argued, noting that “fetch 3 billion is one thing and pick 25 is another.”
“First do not know if it would be possible, second, certainly not at this price,” he added.
So, said Maria Luis Albuquerque, Ireland has more advantages “for specific circumstances” refund anticipation loan from the IMF.
In any case, both countries depend on the “authorization of Europe to make early repayment that do not make the full refund.”
“And then just do not look at the market and say that the rate is lower, you have to be able to go get this lower rate, when we go to the market to fetch much money rate rises, is the law of supply and demand, “he said.
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