Greece and Portugal enjoyed such bailouts in the wake of weak economic conditions in their respective economies. Some combinations of policy requirements usually accompany the borrowed money, removal of state subsidies, balancing of the country’s budget, the liberalization of currency and trade policy, privatizing state corporations, and removing barriers to foreign investment. As of 2020, the IMF enjoys a membership of 189. Any of the countries are free to summon help from the IMF if they cannot finance their debt or finance their import requirements. Critics have blamed the raft of IMF requirements for a series of poor economic outcomes in selected European countries. They argue that the fiscal austerity required of IMF funds often leads to a counter effect on the target populations, negatively affecting local communities. Other measures that have been blamed for poor resulting economic prospects include; trade liberalization, high-interest rates, and open economies to foreign capital markets (Kickert & Ongaro, 2019).
Q1: What is the main issues Greece and Portugal faces on their economic crisis?
Q2: What are the main the effects of IM
