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10 Apr 2013
Troika suggests extending loan repayment for Portugal and Ireland by seven years
FXstreet.com (Barcelona) - According to Reuters, Troika officials issued a statement on Wednesday in which they urge EU policymaker to grant Ireland and Portugal seven more years for bailout loan repayment. This would help the countries return to full market financing.
The proposition will be discussed by EU finance ministers who meet in Dublin this weekend. Extending the repayment plan for Ireland will most probably receive full backing, but Portugal might be required to come up with new austerity measures first, to meet the budget gap of about 1.3 billion euros.
The budget gap emerged after the Portuguese Constitutional court ruled last weekend that four of the austerity measures proposed by the government in the 2013 budget were illegal.
The proposition will be discussed by EU finance ministers who meet in Dublin this weekend. Extending the repayment plan for Ireland will most probably receive full backing, but Portugal might be required to come up with new austerity measures first, to meet the budget gap of about 1.3 billion euros.
The budget gap emerged after the Portuguese Constitutional court ruled last weekend that four of the austerity measures proposed by the government in the 2013 budget were illegal.