Fresh austerity measures proposed by bailed out Portugal have won the approval of the country’s EU-IMF creditors, the government said on Thursday, though a request to ease deficit goals was refused.
Lisbon had lodged a request to raise its 2014 deficit target to 4.5 percent of national output but “the troika did not come back on its position and will only accept 4 percent as previously agreed, Deputy Prime Minister Paulo Portas said.
But Portas said the approval of government policies by the so-called troika of creditors “increased Portugal’s credibility and brings us nearer to an end” of international oversight.
The creditors meanwhile said in a joint statement that the greenlight from the team of auditors paves the way for the next payment of 5.6 billion euros ($7.6 billion).
This is part of the 78 billion euro rescue package agreed in May 2011.
In exchange for the lifeline, Portugal’s government has imposed tax increases and wage and pension cuts in a bid to balance the budget, aggravating a downturn that has sent unemployment to a record 17.7 percent.
Despite growing discontent, the government has largely pushed forward with measures to repair public finances as it seeks further disbursements of bailout funding. (AFP)
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