On 18 May 2014, Portugal officially exited the EFSF financial assistance programme. The EFSF contributed a total of €26 billion to a joint external financing package of €78 billion which also included loans from the European Financial Stabilisation Mechanism (EFSM) and International Monetary Fund (IMF).
The EFSF disbursed the funds in 12 tranches between June 2011 and April 2014. The loans provided by the EFSF have supported Portugal in the implementation of an economic adjustment programme, whose main goals were: fiscal consolidation; structural reforms to boost potential growth, create jobs and improve competitiveness; and stabilisation of the financial sector through strengthening banks’ liquidity and capital.
The reforms implemented in Portugal have laid the foundation for an economic recovery, which in turn have enabled Portugal to end reliance on external financial assistance and resume long-term funding in financial markets.
Initially, the weighted average maturity of EFSF loan tranches was up to 15 years. In April 2013 the Eurogroup decided to extend the weighted average maturity for EFSF loans to Portugal and Ireland by 7 years. The final weighted average maturity of EFSF loans to Portugal is 20.8 years.
The ESM will continue to work closely with the Portuguese authorities in the framework of the ESM’s Early Warning System (EWS). This is a procedure foreseen in the ESM Treaty (which also applies to EFSF programmes) aimed at ensuring timely loan repayments by beneficiary Member States.
Details of EFSF financial assistance for Portugal:
European Financial Stability Facility
6a, Circuit de la Foire Internationale, L-1347 Luxembourg
Grand Duchy of Luxembourg
R.C.S. Luxembourg B153414