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View Full Version : Portugal hands Greece €74.7m in baillout cash



Baluarte
08-05-2013, 04:15 PM
Portugal's government has approved the setting aside of €74.7 million as the country's contribution to the second economic adjustment programme for Greece.

The sum is part of the €359.3 million received from the Bank of Portugal as dividends.

The move comes amid talk that Portugal itself might need a second euro-zone bailout, as it struggles to meet the debt and deficit targets laid down in its own adjustment programme.

In a statement after its regular weekly cabinet meeting, the government said the move was made in the ambit of recent meetings of the Eurogroup of finance ministers of the euro zone, and "taking into account that the Bank of Portugal holds bonds issued by the Hellenic Republic [of Greece] in its portfolio covered by the 'agreement on non-financial assets' signed in the framework of the euro-system."

The Bank of Portugal forms part of the eurosystem, whose cornerstone is th Frankfurt-based European Central Bank.

The second bailout accord with Greece involves a total loan of €172 billion, to be handed out over a period of four years.

The country's parliament last week approved a draft law to reform the tax system and public administration, as demanded by the European Union and the International Monetary Fund as conditions to provide more financial aid.

http://www.theportugalnews.com/news/portugal-hands-greece-747m-in-baillout-cash/29033