Irish government bonds rose, pushing 10-year yields to a record low, as Europe’s most- indebted nations extend their access to funding markets that are thawing as the region’s four-year financial crisis abates.
The International Monetary Fund could allow Greece a longer period to repay loans or grant the country follow-up lending if it’s unable to tap markets, said Poul Thomsen , the head of the IMF’s mission to Greece.
Portugal’s economy will shrink twice as much as forecast this year as the government implements additional austerity measures to qualify for an international aid package of as much as 78 billion euros ($116 billion).
Greece has shown “great progress” in implementing austerity measures to cut the European Union’s second-biggest budget gap and should qualify for a 9 billion- euro ($11.8 billion) installment of emergency loans, an International Monetary Fund official said.
Greece’s economy has been rescued from the “abyss” as austerity measures aimed at restoring order to public finances “are being implemented as planned,” the European Union and International Monetary Fund said.