Government writes off five billion euros in debt to one of the country's largest creditors earlier

Portugal will expedite the repayment of €5 billion to one of its major creditors, the European Stability Mechanism, reducing its debt from €17.8 billion to €12.8 billion by the end of next year. This early payment is part of a strategy to manage public finances and reduce public debt, which is closely monitored by Eurozone partners and external evaluators. The country had previously received significant loans during its 2011 financial crisis, which came with strict austerity measures. The repayment plan includes €2.4 billion this year and €2.6 billion next year, while the country still owes €23 billion to another Eurozone fund. The IMF loan has already been fully repaid.