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16 Sep 2013
Troika back in Lisbon for latest bailout review
FXstreet.com (Barcelona) - EU, ECB and IMF inspectors arrived in Lisbon on Monday in order to carry out another review of the Portuguese 78 billion euro bailout program. This time the talks might be tougher than ever before, as the new deputy Prime Minister Paulo Portas is putting pressure on the Troika to relax the country´s fiscal targets.
Last week Paulo Portas asked the international lenders for easing the deficit target for next year from 4% to 4.5% GDP, despite their opposition to the measure, demonstrated during the latest bailout review. The Troika has already relaxed Portugal´s fiscal target twice, in March and in September 2012.
Portugal is due to exit its bailout program in mid-2014, but, as Paulo Portas said today, it might need a "helping hand" to successfully return to the markets.
The current bailout review is the first one conducted after the outbreak of a political crisis, which gripped the Portuguese government in July after the then Foreign Minister Paulo Portas stepped down to protest against the country's austerity policies
Last week Paulo Portas asked the international lenders for easing the deficit target for next year from 4% to 4.5% GDP, despite their opposition to the measure, demonstrated during the latest bailout review. The Troika has already relaxed Portugal´s fiscal target twice, in March and in September 2012.
Portugal is due to exit its bailout program in mid-2014, but, as Paulo Portas said today, it might need a "helping hand" to successfully return to the markets.
The current bailout review is the first one conducted after the outbreak of a political crisis, which gripped the Portuguese government in July after the then Foreign Minister Paulo Portas stepped down to protest against the country's austerity policies