Portugal defense loan under EU SAFE program to cost 7.68 billion euros

The Portuguese government has projected that a military loan under the European Union’s SAFE program, designed to bolster defense investment, will have a total real cost of 7.68 billion euros.

During a parliamentary hearing, the Minister of Defense revealed that the 5.841 billion euro credit is expected to incur approximately 1.839 billion euros in interest. The financing structure involves a 45-year maturity period with a 10-year grace period, meaning the impact on public accounts is not expected to be significant until the mid-2030s. The simulation is based on a 3.5% nominal interest rate and a 2% target inflation rate from the European Central Bank. The funds are intended to facilitate defense acquisitions, including ongoing negotiations for frigates from Italy.