Tag Archives: 'bailout'
The first alterations to the 2013 budget include a revision of the ceilings for expenses following the Constitutional Court’s rejection of cuts in workers’ subsidies.
If the board votes to approve the assessment by the so-called troika, as expected, that makes possible the disbursement of the eighth tranche of the bailout loan guarantees. The Eurogroup will discuss the results of the seventh review on 20 June.
The document includes measures to replace those recently rejected by the Constitutional Court.
The new targets proposed by the European Commission for Portugal are 5.5% for this year, 4% for next year and 2.5% for 2015.
The troika of international lenders do not discard the possibility of making Portugal’s targets more flexible if economic and budget-related risks materialise, but see no reason to do so now.
The country will receive its next bailout tranche of €2bn, but the cuts presented by the government following the Constitutional Court’s rejection of some of the articles in the 2013 state budget could be still be altered. The priority now is to find an alternative to the controversial tax on pensions.
Vítor Gaspar said the 10-year bonds had a market demand of over €9bn by mid morning, and the sale was proof of rising demand by investors for debt from crisis-ridden countries.
The Ministry of Finance said the troika would be in Lisbon “from Tuesday” to assess the latest austerity measures announced by Prime Minister Pedro Passos Coelho Friday.
Prime Minister Passos Coelho was hoping that further cuts would earn Portugal more time to pay its bailout loans. Eurozone finance ministers are now likely to agree to extend the deadline for the country to pay back its bailout loan over another seven years.
Minister of Finance Vítor Gaspar told reporters on the sidelines of an informal meeting of EU finance ministers the troika would be returning to Portugal at the beginning of next week.