IMF says Portugal economy improving but problems still remainMay 8, 2015 - 16:08 AMT PanARMENIAN.Net - Portugal's economy is improving on the back of short-term benefits but the country still needs to tackle deep-rooted problems that date from before its 2011 bailout, the International Monetary Fund said in a report published Friday, May 8, according to the Associated Press. Portugal — like the rest of the eurozone — is benefiting from low interest rates, low oil prices and the weak euro currency which is helping exports grow, the IMF said. But it noted that Portugal's medium-term prospects "are still clouded by legacy problems." Those include the high private, public and corporate debt that forced Portugal to ask for a 78 billion euro ($87.5 billion) rescue because investors, fearing they wouldn't get their money back, stopped lending to the country. Weak levels of investment and unemployment close to 14 percent are other stubborn problems identified by the IMF. And the three main international ratings agencies still classify Portuguese bonds as junk. Meanwhile, the banking system remains unprofitable and burdened with non-performing loans, the IMF said. The organization urged Portugal to further prune government spending by accelerating structural reforms planned for wages and pensions and reducing expenditure on government services. However, with a general election due in September or October, leading parties are reluctant to tell voters that more austerity is needed. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | PACE wants concessions from Azerbaijan to accept Baku back A PACE co-rapporteur said that Azerbaijani authorities must make certain concessions so that the country can return to PACE. Armenia PM, France envoy discuss regional matters Issues related to the consistent development of Armenia-France cooperation were discussed. Azerbaijan razes historic Armenian church to ground Azerbaijan has demolished the historic Armenian Church of St. John the Baptist (known as Kanach Zham). Turkey extends military presence in Azerbaijan The Turkish parliament has adopted a bill submitted by Recep Tayyip Erdogan to extend the mandate of Turkish troops. |