What policy conditions did Portugal implement in exchange for financial assistance?
The financial assistance provided was conditional upon the implementation of a macroeconomic adjustment programme, with reforms in three main areas:
- A fiscal consolidation strategy, supported by structural-fiscal measures, aimed at setting the debt/GDP ratio on a downward path in the medium term;
- Structural reforms to boost potential growth, create jobs, and improve competitiveness;
- Stabilisation of the 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.