Portugal repays IMF loan early in effort to earn confidence

LISBON, Portugal (AP) " Portugal's government says it has made an early reimbursement of 2 billion euros ($2.12 billion) to the International Monetary Fund, which was one of the contributors to the eurozone country's 78 billion-euro bailout in 2011.

The finance ministry says it will save 41 million euros in interest by repaying the amount, which was due by February 2019.

Analysts viewed Tuesday's announcement as part of an ongoing effort by the center-left Socialist government to allay lingering investor fears about the country's debt levels, even though Portugal has had no difficulties raising money from markets.

Portugal's budget deficit is expected to fall to around 2.2 percent this year, but the Bank of Portugal says government debt reached 133.1 percent of GDP in September. That is among the highest in the eurozone.

This story has been automatically published from the Associated Press wire which uses US spellings

Get the news delivered straight to your inbox

Receive the day’s news, sport and entertainment in our daily email newsletter


© Copyright 2017, NZME. Publishing Limited

Assembled by: (static) on production bpcf03 at 21 Jan 2017 15:42:14 Processing Time: 402ms