Portugal will receive a large sum of financial assistance from the Troika of creditors as which will be the European Union, the European Central Bank (ECB) and the International Monetary Fund (IMF). This decision was made after specialists from these three organizations studied the state of affairs in the country. In this particular case, we are talking about financial assistance in the amount of 4.1 billion euros.
As the verification showed, Portugal quite clearly withstands the course taken to restore its own economy – the main claim of creditors. In conjunction, the crediting party did not have absolutely no objections to provide another credit care for this country. Funds, within the framework of the financial assistance provided, will be provided to Portugal in the current month. In total, out of the estimated amount of 4.1 billion euros, 2.7 billion will be allocated by the European Central Bank and the International Monetary Fund and another 1.4 billion will be allocated from the European Union Fund.
According to the forecast of experts, Portugal GDP this year will be reduced by 3%, which is much better than the previous forecast, according to which the reduction was to occur by 3.25%. However, on the other hand, again, according to forecasts, in the upcoming 2013, Portugal can be reached by unemployment peak, experts predict that 16% of the country’s population may remain without work.
Last spring, the Portuguese government agreed to conduct the strictest budget savings in exchange for financial support and assistance from the main European creditors. As it was planned originally, all the requirements that Portugal were presented by creditors will be met by 2014 and so far the country’s government is fully restrained by the obligations.
The provision of a multi -billion dollar loan, the total amount of which is approximately 78 billion euros, forced the government of the country to take measures of the strictest budget economy. Based on this, the expenses for social ones were needed and vice versa were reduced and on the contrary, taxes were raised and reform was carried out in the field of labor legislation. Thanks to all this, a rather painful reform for society, the country has significantly improved its own financial indicators.
Meanwhile, after Portugal, urgent credit assistance may need Cyprus. According to the head of the Central Bank of Cyprus, in order to meet the EU requirements, for the recapitalization of the country’s largest bank, the Cyprus government may simply not have time to collect 2 billion euros that were lost due to the write-off of Greece issued by this bank.
