Maria Luís Albuquerque says that Portugal is a very comfortable position in terms of funding, so the government will begin early repayment of the loan procedures.
The Government will follow in the footsteps of Ireland and make the advance payment of the loan to the IMF. The news was released by the Minister of Finance, that on the morning of Wednesday, January 21, went to Parliament for a debate on the timeliness with Members.
“The Government will initiate the procedures for early repayment to the IMF,” said Maria Luís Albuquerque in his short opening speech, where he welcomed the success of debt issuance occurred last January 13.
Maria Luis says that the transaction, which combined a ten-year debt issue with an issue to 30 years, allowed the State to complete emissions across the yield curve, as had already been made public. In addition to this is “further proof of the credibility that recovery was possible to achieve over the past few years, to be very sensible and positive impact on the economy,” Maria Luís Albuquerque pointed out that now were also “very accumulated significant cash reserves that allow us to face any very quiet periods of volatility “in the markets.
It is in this context that the market financing is done at lower interest rates than the loan in financial assistance, which the Government decided to bring forward the repayment of the loan granted by the IMF, a scenario that in the last days was considered “interesting” by Cristina Casalinho, that the President of the Treasury Management Agency and Public Debt (IGCP).
Maria Luís Albuquerque stressed the fact that all the indicators known so far point to the fact that the budget implementation in 2014 have gone well, within the limits set by the Government, a break in the last days was marked by UTAO and the Board of Public Finance.
Reimbursement will be progressive
Have a later stage of the debate, the Minister of Finance provided a clarification to Members to avoid the possibility of creating false expectations: “The government is not considering reimburse EUR 26 billion in two or three months. We have to make repayment to the extent that the ability to refinanciarmos in the market at a lower rate, accommodate the repayment.”
The refund will therefore gradually: it is “the beginning of a process that allowed to obtain savings due to the differential in interest rates” of loans in the market and of the IMF loan.
Maria Luís Albuquerque also explained what constitutes the formal procedure that the Government will endeavor: it is “obtain from European partners an authorization to start the repayment to the IMF, without repaying the same propoção partners Europeans.
News updated at 13:00 with additional statements the Minister of Finance
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