The average interest rate for Portugal's 78 billion euro ($110 billion) loan from the European Union and International Monetary Fund will be about 5.1% according to current market conditions, the country's finance minister said Monday.
Speaking after a meeting of EU finance ministers where the financial-aid program was agreed, Fernando Teixeira dos Santos said the average interest rate of the first three years of the loan would be about 5.0% and the rate for the remainder of the 7.5-year package would be about 5.2%.
"Which makes an overall average of around 5.1% for the 78-billion-euro loan that we will be receiving from the three sources of financing," he told reporters.
"The final rate will be only determined at the moment the loan is indeed implemented. But if we consider as if the loan were made today according to the rates that are now in the market, those are the figures," he said in English.
The 78-billion-loan will be split equally among the EU's bailout fund, the European Financial Stabilization Mechanism; the euro area's bailout fund, the European Financial Stability Facility; and the IMF.
-By Nicholas Winning, Dow Jones Newswires, +44 207 842 9498;