EU/IMF mission to Portugal: Bailout plan on good path

• Prospects of success helped by European summit
• GDP to contract 2.2% in 2011, recovery seen starting 2013
• Expects 2011 deficit to not surpass 5.9%/GDP
• Budget goal has not been questioned
• Progress was made to strengthen financial sector
• Short-term is very positive
• Necessary to accelerate and maintain reform momentum
• Developments in line with expectations on bank financing for economy
• Situation remains strained in terms of banks’ funding
• Key to success is official sector cutting reliance on banking sector

By
M.Zohaib Gadit
Forex Trading Consultant