European Central Bank to assess Portugal's economic and financial adjustment program

[News_Editor]

European Central Bank to assess Portugal's economic and financial adjustment program

2011-05-05 21:04:16 GMT+7 (ICT)

BRUSSELS (BNO NEWS) -- The European Central Bank (ECB) on Thursday announced that it will assess Portugal in its economic and financial adjustment program to stabilize its economy.

The Governing Council of the European Central Bank (ECB) also welcomed the successful conclusion of the negotiations among the Portuguese government, the European Commission, and the International Monetary Fund (IMF) that resulted in the adjustment program.

Olli Rehn, European Commissioner for Economic and Monetary Affairs, and Dominique Strauss-Kahn, Managing Director of IMF, also welcomed the program and reassured their support of both agencies to achieve the objectives set in it.

"The Portuguese economy faces considerable challenges and we believe that the bold steps being undertaken will enable it to get back on track. The program’s success will require a truly national effort," said Rehn and Strauss-Kahn in a joint statement.

The program contains the necessary elements to achieve a sustainable stabilization of the Portuguese economy. The European Union and the IMF will provide a total financial support of 78 billion Euros ($114.35 billion) to ensure the success of the project.

Furthermore, the economic and financial adjustment program will address economic and financial adjustment program in a decisive manner and in this way will contribute to restoring confidence and safeguarding financial stability in the Euro area.

The program consists in three main pillars. The first is a set of pro-growth measures aimed at making the country competitive again and creating jobs. Second, a set of ambitious fiscal measures needed to reduce the public debt and deficit. Lastly, a set of measures aimed at ensuring the stability of Portugal' financial sector.

"This is a defining moment for Portugal. Significant challenges lie ahead. The Portuguese people have shown many times before in history that they can rise to the challenge. We have every confidence that they will do so again."

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