Post-Programme surveillance

In June 2014, Portugal exited its 3 year economic adjustment programme which included the implementation of an ambitious reform agenda and contributed to regaining economic growth and restoring investor confidence.

Portugal is now under post-programme surveillance (PPS) until at least 75% of the financial assistance received has been repaid. PPS may last at least until 2026. The objective of PPS is to measure Portugal's capacity to repay its outstanding loans to the European financial stability mechanism (EFSM) and European financial stability facility (EFSF).

Under PPS, the European Commission and the European Central Bank (ECB), will launch regular review missions to Portugal to analyse economic, fiscal and financial developments, and report semi-annual assessments which may recommend further measures when necessary.

Overview of disbursements

The Portuguese government decided to end the programme without disbursement of the full amount of the assistance (in the end €24.3 billion of €26 billion was requested). This decision was publicly announced by the government on 12 June 2014. The concluding EFSM disbursement took place on 12 November 2014.

Overview of EFSM loan disbursements to Portugal

Amount

Maturity

Raised on

Disbursed on

€ 0.4 billion

15 yr

5 Nov 2014

12 Nov 2014

€ 1.8 billion

10 yr

18 Mar 2014

25 Mar 2014

€ 2.0 billion

15 yr

23 Oct 2012

30 Oct 2012

€ 2.7 billion

10 yr

26 Apr 2012

04 May 2012

€ 1.8 billion

26 yr

17 Mar 2012

24 Apr 2012

€ 1.5 billion

30 yr

09 Jan 2012

16 Jan 2012

€ 0.6 billion

7 yr

29 Sept 2011

06 Oct 2011

€ 2.0 billion

15 yr

22 Sept 2011

29 Sept 2011

€ 5.0 billion

10 yr

14 Sept 2011

21 Sept 2011

€ 1.0 billion

25 yr*

25 May 2011

01 June 2011

€ 2.25 billion

20 yr*

25 May 2011

01 June 2011

€ 1.5 billion

12 yr*

25 May 2011

01 June 2011

€ 1.75 billion

10 yr

24 May 2011

31 May 2011

* The original maturity of 5 years of the EFSM loan of €4.75billion raised on 25 May 2011 and disbursed on 1 June 2011 to Portugal was extended in three tranches, in line with Council Implementing Decision 2013/323/EU.

Complementary disbursements were made by the EFSF and the IMF.

Programme for Portugal

In 7 April 2011, Portugal requested financial assistance from the EU, euro area countries and the IMF. An economic adjustment programme was negotiated in May 2011 between the Portuguese authorities and officials from the European Commission, ECB and the IMF.

The agreement on the programme was formally adopted on 17 May 2011 at the Eurogroup/ECOFIN meeting in Brussels. The memorandum of understanding and the loan agreement were signed afterwards. It covered the period 2011 to mid-2014 and included a joint financing package of €78 billion, €26 billion of which was provided by the EU/EFSM, €26 billion by the EFSF and about €26 billion provided by the IMF.

The programme contained reforms to promote growth and jobs, fiscal measures to reduce the public debt and deficit, and measures to ensure the stability of the country’s financial sector.

Portugal Programme Assessment 15 May 2014

Objectives

The aid was provided on the basis of a three-year policy programme for the period 2011 to mid-2014.
The economic adjustment programme included:

  • structural reforms to boost potential growth, create jobs, and improve competitiveness
  • a fiscal consolidation strategy, supported by structural fiscal measures and better fiscal control over public-private-partnerships and state-owned enterprises, aimed at putting the gross public debt-to-GDP ratio on a firm downward path in the medium term and reducing the deficit below 3 % of GDP by 2014
  • a financial sector strategy based on recapitalisation and deleveraging, with efforts to safeguard the financial sector against disorderly deleveraging through market based mechanisms supported by backstop facilities.

Financial package

The total of up to €78 billion of the financial package was financed as follows:

  • EFSM (€24.3 billion disbursed by the end of 2014)
  • EFSF (€26 billion disbursed by the end of 2014)
  • IMF (€26.5 billion disbursed by the end of 2014)

Programme disbursements were made over three years, under EFSM with an average maximum maturity of 19.5 years. IMF disbursements were subject to the special drawing rights (SDR) rate developments.

Key documents

Post-Programme Surveillance Report - Portugal, Summer 2017 (Institutional Paper 061, October 2017)

Ex-Post Evaluation of the Economic Adjustment Programme. Portugal, 2011-2014 (institutional papers 40, November 2016)

Post-Programme Surveillance Report. Portugal, Summer 2016 (institutional papers 36, September 2016)

Post-Programme Surveillance Report – Portugal, Winter 2015/2016 (Institutional papers 22, April 2016)

Post-Programme Surveillance Report. Portugal, Spring 2015 (July 2015)

Post-Programme Surveillance for Portugal. Autumn 2014 Report (occasional papers  208, December 2014)

The Economic Adjustment Programme for Portugal. 2011-2014 (occasional papers  202, October 2014)

The Economic Adjustment Programme for Portugal. Eleventh Review (occasional papers  191, April 2014)

The Economic Adjustment Programme for Portugal. Tenth Review (occasional papers  171, February 2014)

The Economic Adjustment Programme for Portugal. Eighth and Ninth Review  (occasional papers  164, November 2013)

The Economic Adjustment Programme for Portugal. Seventh Review – Winter 2012/2013 (occasional papers  153, June 2013)

The Economic Adjustment Programme for Portugal. Sixth Review – Autumn 2012 (occasional papers  124, December 2012)

The Economic Adjustment Programme for Portugal. Fifth review – summer 2012 (occasional papers  117, October 2012)

The Economic Adjustment Programme for Portugal. Fourth review – spring 2012 (occasional papers  111, July 2012)

The Economic Adjustment Programme for Portugal. Third review – Winter 2011/2012 (occasional papers  95, April 2012)

The Economic Adjustment Programme for Portugal. Second review - Autumn 2011 (occasional papers  89, December 2011)

The Economic Adjustment Programme for Portugal. First review - Summer 2011 (occasional papers  83, September 2011)

The Economic Adjustment for Portugal (occasional papers  79, June 2011)

News articles and press releases

05/07/2017 - Statement by the staff of the European Commission and the European Central Bank following the sixth post-programme surveillance mission to Portugal

08/12/2016 - Statement by European Commission and European Central Bank staff following the Fifth Post-Programme Surveillance mission to Portugal

22/06/2016 - Statement by European Commission staff and the European Central Bank following the fourth post-programme surveillance mission to Portugal

04/02/2016 - Statement by the European Commission and the European Central Bank following the third post-programme surveillance mission to Portugal

12/06/2015 - Statement by the European Commission and the European Central Bank following the second post-programme surveillance mission to Portugal

12/11/2014 - Final disbursement made from EU financial assistance programme

05/11/2014 - Statement by the European Commission and the European Central Bank following the first post-programme surveillance mission to Portugal

17/05/2014 - Statement by Vice President Kallas on Portugal

02/05/2014 - Statement by Vice-President Siim Kallas on Portugal's decision regarding programme exit

02/05/2014 - Statement by the EC, ECB and IMF on the Twelfth Review Mission to Portugal

28/02/2014 - Statement by the EC, ECB and IMF on the Eleventh Review Mission to Portugal

16/12/2013 - Statement by the EC, ECB and IMF on the Tenth Review mission to Portugal

04/10/2013 - Statement by the European Commission, ECB and IMF on the eighth and ninth review mission to Portugal 

21/06/2013 - Council extends maturities of EFSM loans to Ireland, Portugal 

08/04/2013 - Statement by President José Manuel Barroso on the situation in Portugal

07/04/2013 - Statement by the European Commission on Portugal

15/03/2013 - Statement by the EC, ECB and IMF on the seventh review mission to Portugal

19/11/2012 - Statement by the EC, ECB, and IMF on the Sixth Review Mission to Portugal 

19/11/2012 - Statement by Vice President Rehn on the conclusion of the Sixth Review Mission to Portugal 

23/10/2012 - EU €3 billion 15-year bond for Ireland and Portugal meets with close to €6 billion investor demand

09/10/2012 - COUNCIL IMPLEMENTING DECISION amending Implementing Decision 2011/344/EU on granting Union financial assistance to Portugal

08/10/2012 - Eurogroup Statement on Portugal

14/09/2012 - Eurogroup statement on Portugal

11/09/2012 - Statement by the EC, ECB, and IMF on the Fifth Review Mission to Portugal

11/09/2012 - Statement by Vice resident Rehn following the conclusion of the fifth review mission to Portugal

04/06/2012 - Statement by the EC, ECB, and IMF on the Fourth Review Mission to Portugal

26/04/2012 - Commission press release: EU € 2.7 billion 10-year bond for Portugal strongly oversubscribed 

17/04/2012 - Commission press release: EU places €1.8 billion 26-year bond for Portugal

28/02/2012 - Statement by the EC, ECB, and IMF on the Third Review Mission to Portugal

09/01/2012 - Commission MEMO/12/4: EU successfully issued long-term bond with 30y maturity, funding loans of € 3 billion for Ireland and Portugal

16/11/2011 - Commission MEMO 11/793. Statement by the EC, ECB, and IMF on the Second Review Mission to Portugal

29/09/2011 - Commission MEMO/11/656: EU concludes funding programme in September with €1.1 billion 7 year bond

22/09/2011 - Commission MEMO/11/629: Strong demand for EU € 4 billion 15y bond in support of Ireland and Portugal

14/09/2011 - Commission MEMO/11/602: Commission proposes better financial terms for EU loans to Ireland and Portugal

14/09/2011 - EU issued € 5 billion 10y bond to finance loan for Portugal

13/09/2011 - EU to issue new 10 year benchmark bond for Portugal this week

12/08/2011 - Statement by the EC, ECB, and IMF on the First Review Mission to Portugal

25/05/2011 - Commission MEMO/11/344: Second €4.75 billion bond issued this week to support EU´s assistance packages

19/05/2011 - Commission MEMO/11/336: €4.75 billion bond issued for EU´s assistance packages to Ireland and Portugal

17/05/2011 - Memorandum of Understanding on Specific Economic Policy Conditionality

17/05/2011 - Council approves aid to Portugal, set out conditions

11/05/2011 - Council Regulation (EU) No 407/2010 of 11 May 2010 establishing a European financial stabilisation mechanism (OJ L 118, 12.5.2010, p.1).

05/05/2011 - Statement on Portugal by the European Commission and the International Monetary Fund (IMF)

06/04/2011 - Portugal requests activation of the financial support mechanisms

08/04/2011 - Statement on Portugal by the Eurogroup and ECOFIN Ministers