Portugal: Ex Post Evaluation of Exceptional Access Under the 2011 Extended Arrangement-Press Release; Staff Report; and Authorities Views
September 22, 2016
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This paper discusses Portugal’s Ex-post Evaluation of Exceptional Access Under the 2011 Extended Arrangement. Portugal faced a sudden stop in financing in 2011. The authorities’ IMF-supported program aimed to address the problems that had made Portugal vulnerable to changes in market confidence. The evaluation concurs that the program’s “big decisions” were justified. The main lesson to be drawn from Portugal’s experience is that adjustment in the context of currency union membership is difficult. Further work is needed to flesh out the measures required to support internal devaluation and private sector deleveraging. Options for union-level conditionality would benefit from clarification.
Subject: Asset and liability management, Banking, Competition, Debt restructuring, Financial markets, Fiscal consolidation, Fiscal policy, Public debt
Keywords: Competition, competitiveness gap, CR, debt, Debt restructuring, EFF arrangement, Europe, Fiscal consolidation, Fund, General government balance, Global, IMF expertise, ISCR, labor cost-adjustment strategy, Program, reform program
Pages:
79
Volume:
2016
DOI:
Issue:
302
Series:
Country Report No. 2016/302
Stock No:
1PRTEA2016004
ISBN:
9781475538403
ISSN:
1934-7685
