Portugal to pay IMF “20 times more than the €500 million” budgeted for 2015

In a move that sees Portugal paying the IMF 20 times more than the €500 million budgeted for 2015, Portugal hopes to ‘save’ €730 million in interest over the next four years. It is the kind of manoeuvre that goes right over voters’ heads, but it makes economic sense, says public treasury council boss Teodora Cardoso. Thus Portugal plans to pay back €10 million by December this year.

Diário de Notícias explains the decision will up Portugal’s overall debt by €6.4 billion but that this is, in the end, “a good reason” as anticipating the IMF debt means the government avoids “very high interest payments”.

DN explains the €26 billion IMF loan which made up part of the €78 billion bailout is “much more expensive than the European part” and now that the country is back selling debt on the markets, it makes much more sense to deal with it sooner, rather than later.

The Finance Ministry reckons it will save €730 million in interest, adds the paper.

Teodora Cardoso, president of the Council of Public Finances, told TVI 24 that the decision shows the “capacity of the country” and in that respect it is very positive.

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