The economic and financial situation of the country is considered critical (AM 1449). The state of chronic crisis of public finances has led to delays in the payment of salaries to officials and in other public duties. Net external reserves are constantly at “very low” levels, even detrimental to imports.
The impasse in which negotiations on a new agreement with the IMF fell about two years ago has aggravated the situation due to a growing withdrawal of external aid on which the balance of the country's budget has always depended. A little more than a year ago there was an emergency aid from Portugal of EUR 15 million, which allowed STP to avoid a treasury breakdown of serious general implications. READ MORE