Portugal reimburses IMF early, displays financial health

AP News
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Posted: Jun 08, 2015 6:11 AM

LISBON, Portugal (AP) — Portugal is showing off its relative financial health — and signaling it is different from Greece — by paying back another batch of international loans ahead of their due date.

Greece's difficulties in reaching a deal with creditors who bailed it out during Europe's recent debt crisis has spooked investors and fueled a steep rise in the country's borrowing costs.

Some analysts reckon Portugal, which also needed a bailout, could become vulnerable to market uncertainty if Greece's problems deepen.

But Portugal's finance ministry said Monday it intends to pay back this month almost 2 billion euros ($2.2 billion) it owes to the International Monetary Fund.

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In March, it repaid 6.6 billion euro to the IMF ahead of time thanks to record-low yields on government bonds and a recovering economy.