Reducing Economic Distortions and Strengthening Fiscal and Financial Sector Resilience. 1. The Borrower has corrected mispricing of fossil fuels and reduced inefficient public spending by: (a) approving the transition of fuel prices towards market levels, as evidenced by the Joint Executive Decrees No. 81/23 dated June 1, 2023, published in the Borrower’s Official Gazette on June 1, 2023 (I Série – No. 99); and (b) implementing subsidy removal by raising the price of gasoline, as evidenced by the External Circular No. 006/DG/IRDP dated June 1, 2023, as published on the Borrower’s website: xxxxx://xxxx.xxx.xx/images//relatorios/ PREOS-ACTUALIZAO_2023.pdf
2. The Borrower has coordinated actions to strengthen the integrity of the financial sector by: (a) approving a new AML/CFT National Strategy, as evidenced by the Presidential Decree No. 73/23 dated March 15, 2023, published in the Borrower’s Official Gazette on March 15, 2023 (I Série – No. 49); and (b) adopting AML/CFT Action Plan for the BNA, as evidenced by BNA’s document: “Plano de Acção – Prevenção e Combate ao Branqueamento de Capitais, Financiamento do Terrorismo e Proliferação xx Xxxxx de Destruição xx Xxxxx – Janeiro 2023”.
3. The Borrower has improved the management of SOEs and state shareholder participation, by: (a) extending its privatization program while listing specific assets and their treatment, as evidenced by the Presidential Decree No. 78/23 dated March 28, 2023, published in the Borrower’s Official Gazette on March 28, 2023 (I Série – No. 56); and (b) separating commercially oriented SOEs from those providing public services, as evidenced by the Presidential Decrees No. 125/23 and 126/23 dated May 30, 2023, published in the Borrower’s Official Gazette on May 30, 2023 (I Série – No. 97).
