IMF and Portugal Fast Facts

Member since March 29, 1961
Quota: SDR1029.7 million (equivalent to €1144million, US$1,635 million at current exchange rates)

Each member country of the IMF is assigned a quota, based broadly on its relative position in the world economy. A member country's quota determines its maximum financial commitment to the IMF, its voting power, and has a bearing on its access to IMF financing.
Portugal is represented in the Executive Board of the IMF in a group of countries led by Italy and also includes Albania, Greece, Malta, San Marino, and Timor-Leste.

The Executive Board is responsible for conducting the day-to-day business of the IMF. It is composed of 24 Directors, who are appointed or elected by member countries or by groups of countries. The Managing Director serves as its Chairman. The Board usually meets several times each week. It carries out its work largely on the basis of papers prepared by IMF management and staff.
In addition to quota resources, Banco de Portugal has contributed to the New Arrangement to Borrow with a credit line of up to SDR 1542.13 million.

Latest Article IV Consultation

The IMF conducts regular assessments of its members’ economic policies called Article IV consultations. Portugal’s most recent Article IV was concluded on January 20, 2010. The staff report and the Executive Board assessment were published:

Portugal: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Portugal

Executive Board Assessment

Financial Engagements with Fund

Portugal has had two economic programs that were supported financially by the IMF.

In 1977-78, Portugal requested assistance to mitigate deficits and sharp increases in unemployment, energy prices, and inflationary pressures, amidst political and social changes and a global recession. In 1977, it drew SDR42.4 million of its first credit tranche under a Stand-By Arrangement (SBA) and in 1978 requested a SBA in the second tranche for SDR 57.4 million. The amount of financing provided under these two arrangements totaled SDR 99.8 million (equivalent to €111 million and US$158 million at current exchange rates).

In 1983, Portugal requested IMF support to cope with a recession, high interest rates abroad, trade imbalances, and high deficits. Financial assistance totaled SDR499.6 million (SDR445 million provided through a SBA plus a drawing under the now defunct Compensatory Financing Facility of SDR54.6 million.) At current exchange rates, the total financing would amount to about €555 million or US$793 million.

The total amounts outstanding were paid back in full.

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