Memo: Statement by the EC, ECB and IMF on the Seventh Review Mission to Portugal

Staff teams from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) visited Lisbon during February 25-March 14 for the seventh quarterly review of Portugal’s economic adjustment programme.

Programme implementation remains broadly on track, against the background of difficult economic conditions. The end-2012 fiscal deficit target was met, financial sector stability has been safeguarded, and a wide range of structural reforms is progressing. External adjustment continued to exceed expectations. And the government has resumed issuance in the bond market, while domestic financing conditions have eased somewhat. At the same time, weakening export demand, particularly from the euro area, low confidence, and the private sector debt overhang are providing stronger-than-expected headwinds to economic activity.

As during previous reviews, policy choices and implementation of the programme were re-evaluated in the light of the new circumstances.

ESO: Background Information: Statement by the EC, ECB, and IMF on the Sixth Review Mission to Portugal http://www.europeansources.info/record/memo-statement-by-the-ec-ecb-and-imf-on-the-sixth-review-mission-to-portugal/

ESO: Background Information: Statement by Vice President Rehn on the seventh review mission to Portugal http://europa.eu/rapid/press-release_MEMO-13-228_en.htm

European Commission: Rapid: MEMO/13/345: Statement by EC, ECB and IMF on staff visit to Portugal http://europa.eu/rapid/press-release_MEMO-13-345_en.htm

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