The IMF braces for Portugal
Just in time for the expected Portugal bailout, the International Monetary Fund is activating a new supplementary funding pool. My understanding is that the activation timetable was a function of when all states formally approved their contributions to the fund, and not recent events in Portugal, but the timing is certainly fortunate. Less fortunate in ...
Just in time for the expected Portugal bailout, the International Monetary Fund is activating a new supplementary funding pool. My understanding is that the activation timetable was a function of when all states formally approved their contributions to the fund, and not recent events in Portugal, but the timing is certainly fortunate. Less fortunate in terms of a speedy resolution to the crisis is the fact that Portugal now has a caretaker government, not necessarily empowered to formally request IMF assistance:
Just in time for the expected Portugal bailout, the International Monetary Fund is activating a new supplementary funding pool. My understanding is that the activation timetable was a function of when all states formally approved their contributions to the fund, and not recent events in Portugal, but the timing is certainly fortunate. Less fortunate in terms of a speedy resolution to the crisis is the fact that Portugal now has a caretaker government, not necessarily empowered to formally request IMF assistance:
Officials from three smaller parties who went to the president’s riverside “pink palace” Friday all said they preferred early elections in early June. The two largest parties, the center-left Socialists and center-right Social Democrats, were widely expected to follow suit later in the day.
That would likely defer any bailout request to the European Union and the International Monetary Fund until early summer, after the election puts a new government in place.
That sets up a problem, because the outgoing government says Portugal has enough cash to meet a €4.5 billion ($6.4 billion) bond repayment next month, but there is uncertainty about whether it will have enough for a €4.9 billion ($6.9 billion) debt due in June.
David Bosco is a professor at Indiana University’s Hamilton Lugar School of Global and International Studies. He is the author of The Poseidon Project: The Struggle to Govern the World’s Oceans. Twitter: @multilateralist
More from Foreign Policy
Saudi-Iranian Détente Is a Wake-Up Call for America
The peace plan is a big deal—and it’s no accident that China brokered it.
The U.S.-Israel Relationship No Longer Makes Sense
If Israel and its supporters want the country to continue receiving U.S. largesse, they will need to come up with a new narrative.
Putin Is Trapped in the Sunk-Cost Fallacy of War
Moscow is grasping for meaning in a meaningless invasion.
How China’s Saudi-Iran Deal Can Serve U.S. Interests
And why there’s less to Beijing’s diplomatic breakthrough than meets the eye.
Sign up for Morning Brief
Foreign Policy’s flagship daily newsletter with what’s coming up around the world today. Delivered weekdays.
By submitting your email, you agree to the Privacy Policy and Terms of Use and to receive email correspondence from us. You may opt out at any time.
