Ter-Mainassian urges Portugal to save more

By @ibtimes on

Ex-fiscal affair director at the International Monetary Fund; Teresa Ter-Minassian urged Portugal to raise more capital, in order to counter rising budget deficit in the future and lower the current budget gap that may force the nation to acquire a bailout loan from the European Union and the IMF.

During an interview, Ter-Minassian said that Now there's no possibility of using the exchange rate, Portugal has a larger external debt now and needs to increase private and public savings as it aims to enhance competitiveness, through increases in productivity and various structural reforms, which take more time.

She added that I think the IMF can help the credibility of an adjustment effort. Institutions like the IMF were created to facilitate and not to impose macro-economic adjustments.

Join the Discussion