Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Lenders' quarrels undermine trust in Portugal, says leader

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/12/2013 | 10:54am EDT
Members of the European Parliament hold posters with the slogan

LISBON (Reuters) - Quarrelling between the EU and IMF is damaging investor confidence in Portugal and Ireland, and the countries' sacrifices merit better coordination from their international lenders, Portugal's prime minister said.

Pedro Passos Coelho told reporters on Wednesday that public disagreements within the Troika of lenders pose a "real risk" to his country, referring to a spat that broke out between the European Union and the International, Monetary Fund over how the Greek bailout was handled.

"I hope the Troika institutions avoid this kind of public show which may generate distrust in the markets," he said. "Divergences about the programmes means investors start to wonder if programmes like Ireland's and Portugal's contain errors that undermine confidence."

In a report last week, the IMF blamed the euro zone for allowing Athens to delay restructuring its debts until 2012.

"This (rift) is a real risk, but I hope it will be overcome. Both the Irish and the Portuguese government have showed commitment (to targets set by the Troika) in their results," the prime minister said.

Last month, Portugal issued its first 10-year bond since a 2011 bailout, making the most of much improved market conditions. Its benchmark 10-year bond yields are at around 6.3 percent, well down from the 17 percent high they hit in January 2012.

But they remain above May's level of 5.24 percent and the country has yet to fully normalize its access to markets while it battles through a third year of recession.

Passos Coelho said the Portuguese and the Irish had made "immense efforts" under their bailouts and "deserve the respect of international institutions".

He added that his government's relationship with the Troika "has not been easy" but that it was good enough for twice earning an easing of budget deficit targets.

Under revised terms of the 78 billion euro ($100.9 billion) bailout it was granted in 2011, Lisbon must reduce the public deficit to 5.5 percent of GDP this year from last year's 6.4 percent, then to 4 percent in 2014 and 2.5 percent in 2015.

Its European partners have acknowledged that further easing may be on the cards if economic conditions deteriorate.

(Reporting by Daniel Alvarenga and Sergio Goncalves; Editing by John Stonestreet)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
06:17aEurope's stock volatility gauge hits six-week high as weak data stirs worries
RE
06:17aOil declines from 2019 highs but set for third weekly gain
RE
06:11aEskom power cuts to hit South Africa GDP -Goldman Sachs
RE
06:07aAustralia's Myer department stores to stop selling Apple products
RE
06:07aGerman 10-year yields dive below zero to 2-1/2-year lows as growth fears roil markets
RE
06:04aEuro set for biggest drop in two weeks on German PMI miss, yields
RE
06:03aGerman 10-year yields dive below zero to two and a half year lows as growth fears roil markets
RE
06:00aUNECA UNITED NATIONS ECONOMIC COMMISSION FOR AFR : African Free Trade is almost here, delegates to ECA's 52nd Session rejoice
PU
05:53aEuro zone business growth worse than expected in March - PMI
RE
05:45aANALYSIS : Fed Chairman Jerome Powell Shows His Flexible Side
DJ
Latest news "Economy & Forex"
Advertisement