Financial assistance to Portugal

On 17 May the Council adopted a decision granting EU financial assistance to Portugal, in the form of a loan of € 26 billion as part of a € 78 billion package. The decision was adopted following negotiations on the financial support package and having reached agreement with the Portuguese authorities on a programme that Portugal would implement by mid-2014.

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It was decided to distribute the € 78 billion of loans equally between the European Financial Stability Mechanism (EFSM), the European Financial Stability Facility (EFSF) and the International Monetary Fund (IMF).

The economic and financial adjustment programme to be implemented by Portugal will address the challenges of the Portuguese economy. It involves structural reforms to boost growth, create jobs and improve competitiveness. It also contains a strategy to consolidate the public finances: Portugal is expected to reduce its deficit below 3 % of GDP by 2013.

In addition, it should reinforce its banking sector to ensure that it is stable and capable of providing credit. The programme should contribute to safeguarding the financial stability of the euro area.

More information:
Press release (pdf)
Press conference webcast