Government admits to re-anticipating IMF debt payments – The Economic Journal

Government admits to re-anticipating IMF debt payments - The Economic Journal


The Deputy Secretary of State and Finance says that "advance payments have saved more than 850 interest payments in this legislature. Government expects rating agencies to place the debt in an investment grade, "TSF said.

The government admitted on Thursday that Portugal would soon return to the IMF's debt repayment and sent the expectation that the main rating agencies would put the Portuguese debt in an investment grade.

These ideas were transmitted by the Deputy Secretary of State of the Minister of Finance, Ricardo Mourinho Félix, in the Assembly of the Republic, in a debate on public and external debt.

In the opening speech, the Secretary of State defended the thesis of the sustainability of the Portuguese debt, if a policy of "fiscal responsibility that lasts in the next legislatures" was followed, and estimated that the country, in the last three years, has already spared approximately 1,400 million euros in public debt interest.

He told TSF that prepayments to the IMF (International Monetary Fund) have saved more than 850 million euros in interest in this legislature – and 83% of this loan is already paid. We will continue to optimize debt management through available instruments and it is realistic to think about the possibility of further prepayments of the loan to the IMF. "

The Executive assures that Portugal "already has practically covered all the financing needs" but warns that "the external environment is increasingly challenging".

On the eve of the delivery of the Budget for 2019, Ricardo Mourinho Felix warned the blocs of the Left Block and the PCP: that "you can not make permanent spending commitments without having sustainable revenues." During the debate, the Secretary of State considered that the Portuguese debt is sustainable if it is maintained "a policy of" budgetary responsibility ".



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