Friday, May 20, 2011

IMF Dishes $37 Billion to Portugal

Another short-term patch job.

The International Monetary Fund said in a statement it has approved a 26 billion euro ($37 billion) loan for Portugal. It said it would immediately disburse 6.1 billion euros to ease investor concerns over the country's debts.

"The financing package is designed to allow Portugal some breathing space from borrowing in the markets while it demonstrates implementation of the policy steps needed to get the economy back on track," the IMF said in a statement.

Translation: It will be difficult for Portugal to borrow in the markets, since market participants recognize Portugal is a basket case. But the banksters must be paid, so the IMF will provide the money, which comes from IMF members who either tax it away from their citizens directly or through monetary inflation.

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