IMF, EC, ECB Mission Arrives in Portugal to Evaluate Economy

LISBON, Apr.12 -- The IMF, European Commission and European Central Bank mission that has the task of evaluating the Portuguese economy will arrive in Lisbon on April 12. This is the first step for the aid that the European Union will give to the country, following the request the Portuguese government on April 7.

In the next three years, the aid program is expected to change basic aspects of the Portuguese economy. It will focus on five points: a comprehensive privatization program, the relaxation of the labor laws that will make firing workers easier, liberalization of the service markets specially the electricity and gas, reduction of wages and pensions, and tax raise on consumption goods.

The first priority will be the privatization program, in order to reduce the burden of the public debt. In this year's budget, the government had already planned to sell its shares or participations, expecting to achieve 4.8 billion euros until 2013. This program should be accelerated.

The announcement of the IMF/EC/ECB aid to the Portuguese economy is having a positive impact on the Portuguese debt interest rate. In all terms the yield has been reduced although it is still over 7 percent per year.