Lisbon - Portugal finally reached an agreement with the European Union (EU) and the International Monetary Fund (IMF) bailout package related (bailout) worth 78 billion euros or the equivalent of 116 billion U.S. dollars for a period of three years. Portugal is the third country in the euro single currency users that receive bailout funds (bailout), after Greece in May 2010 and Ireland in November 2010. Portugal Total debt is now almost 160.4 billion euros or 93 percent of GDP (gross domestic product).
The deal was reached after the interim government of Portugal to negotiate with delegates from the European Central Bank (ECB), EU, and IMF, to discuss the amount and conditions of the bailout. It is estimated, the negotiation process lasted for two weeks. "I want to announce to the people of Portugal that the government has reached an agreement with members of international institutions in the financial rescue program to help our country," said Portuguese Prime Minister Jose Socrates on Wednesday (4 / 3).
The bailout plan will be used to shore up the threatened collapse of Portugal's economy as they face a default on debt. As a consequence of the acceptance that the bailout, Portugal cuts required to meet the deficit target sit-in stages over the next three years, ie by 5.9 percent in 2011, 4.5 percent in 2012 and three percent in 2013. However, the EU warned that the bailout deal was approved by the opposition. Because the group opisisi considered a part of the filing of these bailouts.
"We warned from the outset that for any program, there must be other parties that support. We will continue our agreement with opposition parties to ensure this agreement, "said EU spokesman, Amadeu Altafaj. On the other hand, the opposition-led Social Democratic Party (SDP) will soon provide an answer to the request of the IMF. "On this day (4 / 5) or tomorrow (5 / 5), SDP will provide the mission-related decisions (bailout)," said Carlos Moedas, politicians from the SDP.
The country is estimated to have failed to pay the debt with maturity in April and June. Recent data mentioned, Portugal had to pay some 4.2 billion euros or the equivalent of 6.0 billion U.S. dollars of debt with a maturity date on 15 April, and other debt of 4.9 billion euros or the equivalent of 7.0 billion U.S. dollars at 15 next June. Portugal must face the hardship before finally getting the funds from the EU and the IMF bailout.
Efforts bailout proposal was inevitable since the parliament rejected the new budget tightening plan to balance the state finance the proposed Socrates, who was then Prime Minister. Through the tightening budget, the deficit reduction target Socrates gradually sit in Portugal, which is equal to 4-6 percent this year, three percent in 2012, and two percent in 2013.
So far, the EU set a deficit limit of three percent crunches. Spain's Distressed debt crisis feared in Portugal extended to countries other euro zone. Concern is not without reason because the economic system between the countries in the euro zone are interconnected. Among other countries, Spain is considered a potential following the steps Greece, Ireland and Portugal. In fact, Spain is currently ranked as the country's four largest economies in the eurozone.
However, the Government of Spain once again emphatically denied when the debt crisis will soon be up to them. Despite the denial, but the facts show the unemployment rate in Spain has now reached 20 percent. It is ranked the highest unemployment in the world. Spain's economy had also been in a weakened condition for several years. In 2008, the property market in Spain has declined sharply and then an impact also on the destruction of the banking sector.
The deal was reached after the interim government of Portugal to negotiate with delegates from the European Central Bank (ECB), EU, and IMF, to discuss the amount and conditions of the bailout. It is estimated, the negotiation process lasted for two weeks. "I want to announce to the people of Portugal that the government has reached an agreement with members of international institutions in the financial rescue program to help our country," said Portuguese Prime Minister Jose Socrates on Wednesday (4 / 3).
The bailout plan will be used to shore up the threatened collapse of Portugal's economy as they face a default on debt. As a consequence of the acceptance that the bailout, Portugal cuts required to meet the deficit target sit-in stages over the next three years, ie by 5.9 percent in 2011, 4.5 percent in 2012 and three percent in 2013. However, the EU warned that the bailout deal was approved by the opposition. Because the group opisisi considered a part of the filing of these bailouts.
"We warned from the outset that for any program, there must be other parties that support. We will continue our agreement with opposition parties to ensure this agreement, "said EU spokesman, Amadeu Altafaj. On the other hand, the opposition-led Social Democratic Party (SDP) will soon provide an answer to the request of the IMF. "On this day (4 / 5) or tomorrow (5 / 5), SDP will provide the mission-related decisions (bailout)," said Carlos Moedas, politicians from the SDP.
The country is estimated to have failed to pay the debt with maturity in April and June. Recent data mentioned, Portugal had to pay some 4.2 billion euros or the equivalent of 6.0 billion U.S. dollars of debt with a maturity date on 15 April, and other debt of 4.9 billion euros or the equivalent of 7.0 billion U.S. dollars at 15 next June. Portugal must face the hardship before finally getting the funds from the EU and the IMF bailout.
Efforts bailout proposal was inevitable since the parliament rejected the new budget tightening plan to balance the state finance the proposed Socrates, who was then Prime Minister. Through the tightening budget, the deficit reduction target Socrates gradually sit in Portugal, which is equal to 4-6 percent this year, three percent in 2012, and two percent in 2013.
So far, the EU set a deficit limit of three percent crunches. Spain's Distressed debt crisis feared in Portugal extended to countries other euro zone. Concern is not without reason because the economic system between the countries in the euro zone are interconnected. Among other countries, Spain is considered a potential following the steps Greece, Ireland and Portugal. In fact, Spain is currently ranked as the country's four largest economies in the eurozone.
However, the Government of Spain once again emphatically denied when the debt crisis will soon be up to them. Despite the denial, but the facts show the unemployment rate in Spain has now reached 20 percent. It is ranked the highest unemployment in the world. Spain's economy had also been in a weakened condition for several years. In 2008, the property market in Spain has declined sharply and then an impact also on the destruction of the banking sector.
