IMF goes home on eve of general elections

Page created: Friday, 14 August 2015 14:34 GMT

Elections  IMF  Tax

The permanent delegation of the International Monetary Fund (IMF) in Portugal is to close in late September and its representative in Lisbon, Albert Jaeger, is going back to Washington.

The news was advanced by ‘Jornal de Negócios’ and confirmed to Lusa by an official IMF source on Friday, who said that “the office is going to close” when Albert Jaeger’s “four-year mandate expires”.

The source said they had decided not to “appoint a new representative” adding that normally the (IMF) representative “stays three years” and that in the case of Portugal, this mandate had already been extended by one more year.

The IMF is going to be leaving Portugal just days before the general elections on 4 October.

In their last report on 6 August regarding their second assessment after the end of the bailout, the IMF called on the government to be “cautious” in returning the revenue measures warning that it may be necessary to “delay or cancel” the elimination of the income tax surcharge.

They also warned that company tax and income tax revenues may be below the goals for this year compromising the deficit if new cost contention measures are not applied.