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IMF approves 26 billion euro loan to Portugal

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IMF approves 26 billion euro loan to Portugal

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The International Monetary Fund has approved a 26 billion euro loan for Portugal. More than six billion will be channelled immediately to the country to ease investor concerns over its debts.

The funding is part of a 78 billion euro bailout package by the EU and the IMF.

It is designed to allow Portugal some breathing space while it takes steps to get its economy back on track.

But the austerity measures and reforms imposed in exchange, aimed at slashing the huge public debt, have caused anger.

Thousands of people demonstrated in Lisbon and Porto this week against the plan, which they say will bring more poverty and unemployment.

The Bank of Portugal says the measures are inevitable, but admits the short-term economic and social impact will be “substantial”.