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The Portuguese Treasury and Debt Management Agency (IGCP) repaid the International Monetary Fund (IMF) another €1.75 billion in July, which means Portugal has now paid back 60 percent of what the Fund lent it.

These repayments are capital amortizations that were originally supposed to be paid in June 2019 and March 2020, the IGCP said, stressing that with these repayments, Portugal has paid back 60 percent of the initial IMF loan.

The repayment had already been announced by the finance minister who said that until the end of August, Portugal expected to make early repayments of €2-6 billion to the IMF.

In June, the European Financial Stability Fund authorized Portugal to make more early repayments to the IMF totaling €9.4 billion.

The interest charged by the Fund is higher than the rate Portugal is currently paying for 10-year bonds, which is around three percent meaning these early repayments create savings in the country’s government debt.

Article by TPN/Lusa