A year ago it was the turn of Ireland and today is the turn of Portugal repeat the beacon and anticipate the payment of the money that has been borrowed by the International Monetary Fund (IMF) during the redemption period. The Government undertakes to repay advance 14 billion, more than half of the IMF loan of EUR 26 billion. Everyone wins with the operation: the IMF, which gets its money ahead of time; Portugal, replacing more expensive financing for cheaper money; and Europe an d Germany, who can present Portugal as another success story where reforms and austerity allowed regain the confidence of creditors. The subject is extremely sensitive, especially on the eve of a meeting of the eurogroup on that will discuss the future of Greece and perhaps his stay in the euro.
With this operation, the Portuguese State will achieve a savings to the state coffers that should be around 150 to 200 million euros per year. For this early repayment should not be seen only as a mere accounting operation, it is important the Government announce that fate will give the value that can save in interest. The PSD, the voice of Mr Duarte Pacheco, has come to suggest that the savings achieved with the interest is likely to be reflected in taxes.
The suggestion is good. And it would be interesting that the Government to rule on it. Of course, EUR 200 million are not enough to make a large tax relief. But it’s something. To get an idea of the order, the introduction of the family quotient will cost 150 million to the state. And more important than the money is the signal that gives the Portuguese, of wanting to share the adjustment gains after three years to demand austerity.
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